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VIX At Lowest Level Ever Could Be Connected To French Elections

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Mark Melin
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As the stock market appears headed towards a land where storytelling might be winning the day, odd occurrences are taking place underneath the market structure. A Goldman Sachs report notes that the previous quarter’s volatility as measured by the VIX was at an all-time low “despite a quarter characterized by elevated policy uncertainty.” But more ominous is a volatility term structure inversion is occurring in Europe, a CBOE volatility expert first points out. Is there a connection to the upcoming French Election ?

 

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.