Dow futures are now almost 600 points from their pre-opening highs as US equity markets stumble hard with soaring VIX and bond yields...
The Dow is collapsing... (after retracing 50% of its plunge)
XIV and The Dow are in perfect sync once again...
VIX is back above 30...
The S&P 500 has found support at its 100DMA for now...
And while it appears that the spike in yields triggered the weakness in stocks; as stocks sink, bond shave found a safe-haven bid...
But rate volatility is surging...
As Risk Parity Funds are forced to delever...
This is one of the biggest RP strategy drops ever...
This is far from over...
That Was Just The Start: Risk Parity, CTAs Are In Process Of Selling $200 Billion https://t.co/EqwVbg5HT7
— zerohedge (@zerohedge) February 6, 2018
And every stocks crash will lead to another VIXplosion: first VIX ETNs, then CTAs, then Risk Parity https://t.co/uzzsKCg43n
— zerohedge (@zerohedge) February 7, 2018