After Calling April's Whimpering Volatility Spike, MKM Derivatives Analyst Left Wondering When Shoe Drops

Volatility has been acting “odd,” a research note from MKM Partners observed. Back on March 6, when the research provider made the projection that volatility spike was likely to rise again in the intermediate term, they did so based on historical pattern analysis rather than a fundamental market call. Volatility did jump, but even that relative spike was abnormal.

Forecasting a stock market crash and resulting major volatility spike can be a challenging task

Perhaps one of the most difficult feats in forecasting is accurately predicting a market crash. The feat has been partially accomplished only once when in 2015 JPMorgan’s Marko Kolanovic forecast a flash crash approximately in the middle...