Why are we seeing such a vicious volatility unwind today... These are the keys behind being so bearish, you become bullish ;) @WClementeIII A tale in 4 charts: 1) The VIX curve was almost inverted on Friday. This happens when hedge funds bid up front month volatility more than volatility 3 months out.

Seasonally, November is one of the lowest volatility months due to Thanksgiving holiday trading and a dearth of earnings. There are less trading days also. Beware the vol bleed.

There was a capitulation in the momentum factor which usually bottoms around -12% on a 5 day rolling basis.

Goldman says they saw shorts build over the last pullback.... "Over the last two weeks, we’ve seen one of the largest short build-ups in recent years – comparable to April 2024, Q3’22, and Q1’21. As a result, our Sentiment Indicator (the GS gauge of US equity positioning) has fallen to its lowest level in five months, once again nearing “light” territory."