Life after the panic buying
Beware of today's volatility explosion
The crowd has been sucked into the long European equities trade. Yesterday we pointed out (here): "...the SX5E has actually been putting in rather weak candles over the past days...Hedging European downside looks rather cheap here." The SX5E is putting in the biggest down candle since the mid December puke, and V2X is exploding to the upside, taking out one month of declining vols in a session.