Some stars are aligned for another bear market squeeze

Some global stress is easing

Equity people tend to focus on equities only and often miss the early "stuff" going on in cross assets (beyond the obvious ones). In late March (here) we pointed out that some FX vols were picking up big time. Specifically we pointed out: "We are talking about the massive volatility pick up in the JPY that could have spill over effects and lead to volatility picking up in other assets as well." VIX caught up big time, but note the latest move lower in JPY 1 month vols. The gap is still big, but it is always about the "delta" of moves, and the JPY volatility situation is recently getting relatively more calm...