the vix

Episode 76: Warning: Market Volatility Ahead & The Fear Index

In this harbinger of an episode, Rob Booker talks with David Rodriguez, a currency strategist at Daily, about a broad-based, macroeconomic picture and the potential perils that lie ahead in the next month.

Rob and David begin by discussing the state of trading for the summer of 2012, August in particular, while commenting on the market’s recent lack of volatility and how that condition has been rather kind to traders. This leads into a sober chat about some warning signs on the horizon that could cause volatility in the market. David mentions that in September, there are three huge macroeconomic risks fast approaching, namely: U.S. Nonfarm Payrolls, the European Central Bank announcing monetary policy, and a German Constitutional Court ruling, which David describes as a ruling on the legality of the European stability mechanism (the EU Bailout). And Rob mentions that there’s also the upcoming Jackson Hole meetings and the U.S. Federal Reserve’s announcements.

Also in this action-packed episode, Rob and David talk about the VIX (aka “The Fear Index”); whether low volatility leads to high volatility; the risk-on, risk-off trade; and you’ll hear David’s surprising advice for how to proceed when times are tough. Believe us — you don’t want to miss this one!

Links for this episode:


David on Twitter: @DRodriguezFX

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