Wednesday, January 03, 2018

2018 View from 30,000 ft. Both China and USA


China end of Vol Cluster. 2/10 Susceptible to exogenous event.  IF NO EXOGENOUS EVENT, THEN NO PHASE TRANSITION.

Close to our Inflection Point, not an ending point for us necessarily-a ways off.

Buy Vol shortly before 2/10 related to CHINA FXI (with greater than 30 day expiration to remove time decay risk.)

THE INFLECTION POINTS IN CHINA AND THE USA ARE DIFFERENT.  THE INFLECTION POINT IN CHINA IS AN END OF VOLATILITY CLUSTER.

We have an inflection point around 4/21, but it is not an end of cluster point.  It is a point, of a change of direction.  If China starts to pull us down starting around 2/10, we will have a persistency to go down also until around 4/21, at which time there will be a change of direction/persistency to flat, and or up.

If accurate than it gives confirmation of when we will have a Six Sigma Volatility event in the future.  I am keeping that to myself, for now.