..”they” start chasing VIX in such a fashion they push VIX above VXN.

Maybe you can think of tech as the relatively more safe place to be given the current recovery implosion, but NASDAQ vol should trade above SPX vol over time.

As we have explained before, when things get “fluid”, the late hedgers (and there are many) must buy protection at any price and the only liquid enough product to buy panic hedges is in VIX. Therefore when “real” volatility kicks in, VIX sees that huge relative bid.

We can see the same “phenomenon” when comparing VIX to VXEEM. VIX is hardly carrying more risk than the EM space at the moment.

Let’s see how things develop from here, but a possible “fade” VIX vs other vol indexes trade is setting up soon.

Biggest fear since corona
Welcome to extreme fear. This is when people start blaming the psychology and the technicals of this market.