Correlations closed the week .76.  The vix index is no longer warning, the spread between implied and realized is compressing quickly.

 

With correlations near .8 the only thing we are convinced of is volatility, risk is high.

Risk will have decreased once sector rotation begins again.  As you can see from the above chart, the outcome of possibilities had expanded significantly, both to the upside and downside.

Thanks and have a great week.

 

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