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Volatility indexes VVIX and UVIX are each near 95, while spot VIX remains contained at 15.44.
Craig Shapiro highlighted that tail protection is being bought on the surface, with TAIL at 50 and SVXY at 11, even though realized volatility appears calm. He also noted that factor leadership has shifted each session: from defensives on October 8, to value, credit, metals, and China by October 12, and then to other sectors today.
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Shapiro previously noted Brent crude reaching $105 amid Pentagon strike plans, citing additional risks from AI credit and bond markets in earlier commentary. He has also reported HYG and JNK moving from the lowest to the top quartile among ETFs, with metals also advancing and PFIX up intraday, according to recent ETF flow observations. These developments provide further context to the current shifts in volatility positioning and sector leadership.