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Vol Street Journal™ :: Episode 37

PROGRAMMING NOTE: There will be no Vol Street Journal episode for the next two weeks. I’ll be back in early September after my summer break. This week I evaluate whether the volatility crush has become over-extended. I also review improving market models, a noteworthy divergence in volatility composition, the Treasury market’s response to the latest inflation data, and follow-up on positioning in equity futures. Topics covered this week: -HRV and Early Warning System model updates -Historic contango and spread expansion across VIX timeframes and futures -Divergences between VIX and 1-month implied correlations -Treasury curve steepening and credit market volatility compression -COT positioning dynamics and relative value index pair trades Here we go!

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