Trump protests escalated the markets sharply. The VIX exploded because nobody knows what will happen.
💢Why did the #VIX explode?
What we see in the chart is not just a panic, it is an ‘uncertainty shock’.
Although Trump has only been in office for 3 months, he is facing serious street protests due to his aggressive policies and rhetoric.
Such crisis situations are enough to momentarily shake the confidence of global investors in the US, because markets are emotionless, shaped according to events.
Due to the protests, the S&P and NASDAQ have been feared to sell hard
Investors play hedge in such situations.
At the same time, algorithms may even be opening temporary long positions in anticipation of ‘Will the FED intervene?’.
Let's take a look at the scenarios;
If the protests grow, if the clashes spread:
🔸VIX overflows over 50
🔸S&P500 experiences serious selling pressure
🔸Gold and bonds come to the fore
If Trump steps back or the situation calms down:
🔹VIX is quickly withdrawn
🔹Indexes may regain strength
🔹Investors switch to risk-taking again
In short, if the protests grow, this could be not just a VIX jump, but the potential collapse spark of 2025.
#vix #spx #spx #spx500 #nasdaq #nasdaq100
💢Why did the #VIX explode?
What we see in the chart is not just a panic, it is an ‘uncertainty shock’.
Although Trump has only been in office for 3 months, he is facing serious street protests due to his aggressive policies and rhetoric.
Such crisis situations are enough to momentarily shake the confidence of global investors in the US, because markets are emotionless, shaped according to events.
Due to the protests, the S&P and NASDAQ have been feared to sell hard
Investors play hedge in such situations.
At the same time, algorithms may even be opening temporary long positions in anticipation of ‘Will the FED intervene?’.
Let's take a look at the scenarios;
If the protests grow, if the clashes spread:
🔸VIX overflows over 50
🔸S&P500 experiences serious selling pressure
🔸Gold and bonds come to the fore
If Trump steps back or the situation calms down:
🔹VIX is quickly withdrawn
🔹Indexes may regain strength
🔹Investors switch to risk-taking again
In short, if the protests grow, this could be not just a VIX jump, but the potential collapse spark of 2025.
#vix #spx #spx #spx500 #nasdaq #nasdaq100
For more you can follow me on X. @UgurTash
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For more you can follow me on X. @UgurTash
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.