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Sunday night’s headlines were unsettling as an onlooker – you could watch the carnage erupt in big Asian markets like Korea and especially Japan, where the Nikkei just had its roughest session ever.So I knew even then it would only be a matter of hours before the carnage jumped back over the International Date Line and spread to U.S. and global markets.The VIX blew out to 65 pre-market and it initially looked as though we’d go “limit down” in Russell 2000 (RTY) and Nasdaq (NQ) futures. But, the selling abated and, wouldn’t you know it, the intra-day rally was on!You have to question the longevity of such moves, especially against the backdrop of the huge Treasury rally last week and the strengthening yen – that’s what’s signaling the unwind of the carry trade.Yes, today was a day to roll hedges, but the big question is: What about long opportunities? In my view, the selling in equities markets needs to catch up to the buying in volatility markets.The fade toward the close seems to suggest exactly that – here’s what you need to know…Video Length: 00:13:33More By This Author:Game On! Volatility Strikes Back… And It Strikes Hard I Wasn’t Joking About “Risk-Off” – This Is What To DoMarkets, Please Exit To Safety In An Orderly Fashion
