Volatility Signals Potential for Sharp Market Decline
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Volatility dispersion trade expected to break down soon, potentially leading to a sharp market decline.
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Weak options hedging flows creating opportunity for brutal sell-off into February and March.
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Implied volatility patterns setting up similarly to what happened over the summer.
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Earnings season impact on implied volatility important to watch.
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Window still open for significant market decline based on volatility mechanics.