How Headwaters Solutions CIO Rowe Is Trading the S&P 500 ETF

The video discusses the volatility trends in the market, focusing on the VIX levels from 2016 to 2018. It highlights the impact of passive fund flows, geopolitical factors, and global macroeconomic conditions on market volatility. The speaker also delves into technical analysis, structural changes in volatility markets, and the predictive power of the skew index. A trading strategy involving buying upside calls and hedging is presented as a way to benefit from volatility expansion.

What were the main factors contributing to the increase in volatility in 2018?

• High interest rates and inflation

• Passive fund flows and geopolitical events

• Technological advancements and market saturation

• Decreased consumer spending and high unemployment

Why is it important to recalibrate technical analysis in the current market?

• To better understand the impact of structural changes in volatility

• To incorporate new financial instruments

• To account for new trading algorithms

• To adjust for changes in market regulations

What does the skew index help predict in the market?

• The level of concern among investors

• The likelihood of a market crash

• The performance of specific stocks

• Future interest rate changes

What strategy is suggested for trading volatility?

• Short selling stocks

• Buying upside calls and hedging

• Investing in bonds

• Holding cash reserves

What recent market abnormality was observed related to the VIX curve?

• A flattening of the VIX curve

• A sudden spike in VIX values

• An inversion of the VIX curve

• A steep decline in VIX levels