The VIX Isn’t Broken!
September 5, 2023

Over the last few months, there has been a steady chorus of traders and social media commentators claiming that the VIX is somehow “broken,” i.e., the index no longer responds adequately or sufficiently to economic crises, market movement, or sentiment. ...

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Implied Correlations: On the Rise from All-Time Lows?
August 30, 2023

Correlations play a pivotal yet sometimes overlooked role in predicting future market volatility. The correlation between stocks within a portfolio reflects their tendency to move in tandem. Stocks that exhibit strong positive correlation indicate a lack of diversification, subsequently amplifying ...

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The Ukraine War: Are Grain Shortages Imminent?
July 31, 2023

The war in Ukraine continues with no clear winner in site. Last month’s attempted coup in Russia served to intensify both sides’ determination to gain an advantage, whether through pressure on the battlefield or through other, indirect means. For Russia, ...

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Teaching an Old Ratio New Tricks
July 20, 2023

The Put/Call (PC) ratio is a very common indicator that traders use to measure investor sentiment. Given their highly publicized use in trading strategies, using put/calls as a signal to generate excess returns can be near impossible. In today’s market, ...

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The Russian Coup and Commodities
July 3, 2023

Although it’s hard to tell by reading only the financial news, there was a mutiny last weekend in Russia. This was one of the biggest international news stories so far this year; Russia (the Soviet Union) hasn’t had a coup ...

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Nvidia: Emerging as a Risky Megacap Outlier
June 14, 2023

The AI-fueled rally has propelled Nvidia to extraordinary gains this year. Among the large megacap tech stocks, which have collectively contributed to the resurgent S&P 500, Nvidia stands out as the sector leader, boasting a staggering 160% year-to-date gain. However, ...

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The Growth of the Canadian Derivatives Market
June 2, 2023

The Canadian options market has seen tremendous growth over the past decade, with both open interest and trading volume increasing substantially. In this article, we’ll take a closer look at the growth of the Canadian options market, using two charts ...

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Regional Banking Sector Jitters: PACW Volatility Surges, Highlighting Risk and Amplifying Short Squeeze Potential
May 22, 2023

Regional bank stocks have experienced a significant decline in response to a series of recent failures, which has understandably raised concerns about the industry’s stability. This downward trend has been further fueled by substantial short selling pressures. Consequently, contagion fears ...

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Commodities on the Defensive
May 5, 2023

Since commodities are essential industrial inputs, they are sometimes used as an indicator to gauge future economic conditions. Although not as widely reported as developments in the equity and fixed income markets, recent price action in certain commodity markets may ...

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