The FAANG space is not happy today. We saw several of the names trade higher in pre market today but price action has reversed and they are all being sold currently.
QQQ trades heavily to the downside and is closing in on the 50 day average which is at 174. The trend channel since April lows is still in place, but the “sudden” reversal is not overly pretty.
We are seeing VIX trade up by almost 15%. We have been writing about cheap volatility offering cheap hedges over past days. Earlier today (when all was still “rosie”) we suggested;
…volatility is starting to offer cheap hedging….
One chart comparison doesn’t mean there is a correlation but the chart standing out the most this week is the comparison chart of DOW now and 1987. Probably nothing, but worth a view (and having some cheap options for the just in case scenario).
Chart Tradingview h/t @ecantoni
Source: chart by Bloomberg unless other stated