Why Last Week’s Volatility Was Largely Positive for Markets
Last week’s massive VIX spike, driven by a combination of low summer liquidity, a weak jobs report, and the unwinding of the carry trade, created a rare market event. While the spike was historic, the rapid collapse of volatility that followed is even more telling. This suggests a major opportunity for bullish trades, especially as the market now seems primed for a strong rally. Key upcoming catalysts, such as Nvidia earnings and the CPI report, are likely to reinforce this bullish sentiment.