Jun. 27 at 9:00 PM
$VIXY Something caught my attention this week:
Nasdaq volatility relative to the S&P 500 is at its widest divergence in years. This isn’t noise. It’s a signal.
Options markets are paying high premiums to hedge against tech drawdowns, while the rest of the market stays calm. This isn’t broad fear. It’s specific fear.
And specific always hurts more.
The real problem isn’t high valuations. That’s the symptom. The problem is too much money betting on the same thing: a handful of AI companies that are “going to change everything.”
When everyone’s on the same side of the boat, you don’t need a big storm to tip it over.