We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Have central banks run out of ammo? And where are central banks heading? Find out from cross-asset class trader, @JohnNetto only on Trading Global Markets Decoded #podcast with @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/HprpRueTXH
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.86%, while traders in France 40 are at opposite extremes with 75.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/PG6QQFO8tv
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/yKEBSyKbgS
  • RT @globaltimesnews: China-US #tradetalks must be based on equal footing and mutual respect. The deal must be mutually beneficial, said Chi…
  • RT @LiveSquawk: China Offers No Confirmation On US Trade Deal – WSJ https://t.co/hWUwdf4iow
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.28% Silver: 0.26% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/La4HQtV3ur
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.68% 🇪🇺EUR: 0.48% 🇳🇿NZD: 0.26% 🇨🇦CAD: 0.18% 🇦🇺AUD: 0.11% 🇯🇵JPY: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SoW8VDJZgA
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.32% France 40: 1.22% Wall Street: 0.55% US 500: 0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hXfpb9bT4W
  • Euro vs USD Forecast: EUR/USD Gears up to 1.1200 Handle – What’s Next? More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2019/12/13/Euro-vs-USD-Forecast-EURUSD-Gears-up-to-1.1200-Handle-Whats-Next-MK.html/?CHID=9&QPID=917714 https://t.co/DkAGBJlDTH
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/gfDv4QcaZ7
Be Wary of Rebound in Risk Assets and Cooler Volatility Indexes

Be Wary of Rebound in Risk Assets and Cooler Volatility Indexes

2016-02-25 02:32:00
John Kicklighter, Chief Currency Strategist
Share:

Talking Points:

• The S&P 500 has held its floor at 1,800 and mounted strong intraday rallies like that seen on Wednesday

• Volatility measures like the VIX seem to signal reduced fear, but these indicators are not good leading measures

• Underlying conditions - fundamental, technical, systemic - present a market at risk of sudden reversions to unwinding

What are the Traits of Successful Traders? See what our studies have found to be the most common pitfalls of retail FX traders.

A rebound in risk-oriented assets (S&P 500, high-yield) and retreat in implied risk measures (VIX) seems to paint a picture of improved market conditions. And, given the rout investors have seen these past months and years; there is a lingering fear of missing an opportunity to enter the revival of sidelined sentiment trends. Yet, prices leveling out and 'insurance costs' falling are not in themselves evidence that conditions have improved enough to support the value investor, buy-and-hold mentality of past years. The shortfalls of measures derived from speculative assets themselves are open to the same misinterpretation, distortion and speculation as the underlying themselves. In today's Strategy Video, we look at the false sense of security that comes with pauses in certain risk trends and the unwarranted leverage from popular measures like the VIX volatility index. We also discuss what the risks may truly be from a price, fundamental and systemic perspective.

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.