IG | Apr 06, 2016 04:55AM ET
Catalysts for change: part three – volatility
As the complacency trap that has been built up in March looks to have caught the markets out, I am jumping ahead in my three-part analysis of catalysts to cover part three: volatility.
Bullish for the VIX
Oil is clearly driving the ASX and volatility; with oil being my first catalyst, the third catalyst of volatility confirming the risks for the second quarter are real and in the first stages of being confirmed.
Volatility will trigger a change in the trading dynamics of the markets, the US has clearly out run the ASX over the past 10 trading days as the Fed moves away from hikes; however, if the VIX snaps out of its low levels, it will confirm an inflection point in global markets.
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