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COVID-19 UPDATE: VIX looks ready to break to 2020 new lows = risk-on. Daily deaths still trailing Wave 1 and Wave 2

Click HERE to access the FSInsight COVID-19 Daily Chartbook.

STRATEGY: The VIX looks ready to make a move below 20 = risk-on
The VIX, a measure of market's anticipated volatility, is shown below, showing spot VIX over the past 18 months. As is apparent, the VIX has not been below 20 since the start of the pandemic:

- But is the VIX ready to make a move below 20? finally?
- If so, this would be the first move below 20 since the pandemic started

In our view, a move <20 would be a major risk-on signal, as it would suggest that investors see lower volatility in the coming months.  This would be quite a change for much of 2020.  And if so, a drop in VIX would also suggest investors would not only be more "risk-on" but we could see a risk on investment leverage as well.  

In other words, this would be more firepower to buy equities.

The video in this report is only accessible to members
COVID-19 is spreading at an accelerated rate across the US.  On the one hand, we know that therapeutics are much better today, so the risk of mortality overall is lower than it was 8 months ago.  However, no one wants to get COVID-19, given its mysterious side effects.  But we were really surprised to see this headline below:- One of VP Biden's advisors is suggesting the US pursue a 4-6 week lockdown to contro...

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