This Has Never Happened Before

Since its peak into year-end, VIX has collapsed from over 36 to almost a 10 handle last Thursday as The Fed's flip-flop re-energized the sell-vol-at-all-costs trade that has become the bread-and-butter of so many of newly-minted 'gurus' in this market.

This is the biggest drop year-to-date and the biggest 17-week collapse in risk since records began (in the last '80s)

 

Of course, the momentum crowd is unphased and has chased this compression all the way down to the greatest short VIX futures positioning on record...

Ignoring the steam-roller of yield curve compression that signals this nickel-picking-up-plan won't end well...

But we are sure all those specs will know when to exit their position and escape unharmed.

They better hope that global money supply keeps surging...