Nasdaq ‘Fear Gauge’ Flashes Warning Signs About Tech Rally
- Nasdaq-100 volatility index rising even as stocks advance
- Tallbacken recommends hedges via bearish options trades
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There are more signs of possible trouble ahead for high-flying technology stocks, this time from gauges of expected volatility.
One alert stems from the widest spread since 2004 between the Cboe NDX Volatility Index, a measure of implied equity swings for the Nasdaq-100, and the counterpart so-called “fear gauge” for the S&P 500. Another comes from unusual simultaneous gains in the technology index and the NDX recently.