Resistance Prevailed | IVolatility.com

Last Week’s Highlights at IVolLive:

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And the Q1 Winner Is...

April 3, 2023

The first quarter of the year has come to a close. After a tumultuous 2022, which asset classes were the winners (and losers) for the quarter? Drum roll...

Source: IVolLive

Despite increased regulatory scrutiny and drama, Bitcoin was the top performing asset class of the first quarter. Following the king of crypto was the tech-heavy Nasdaq (which officially entered bull market territory as of Friday's close), German stocks (the Dax), and boring (usually) U.S. Treasuries – which were anything but boring following heavy drama and intrigue around interest rates and inflation.

We've featured many of these trends in these pages, including the action in the CBOE Volatility Index (the "VIX" aka "fear gauge"). Here's a Q1 chart of the VIX from IVolLive.

Source: IVolLive

With this chart, we can see that last quarter, the VIX bounced in a ten-point range between 18 and 28, peaking on March 13th, and approaching its Q1 lows of 18.

Investors are rotating out of stodgy industrial stocks and into tech names as revenues remain high and cost-cutting measures go into effect.

Time will tell if this trend continues...

Summing Up

The first quarter of 2023 is officially in the books. Investors are breathing a collective sigh of relief that despite continues interest rate drama, crypto escalation, and the back-and-forth battle against inflation, the market has remained resilient.

Trends were looking at as we go into the second quarter:

  • Continued strength in the tech sector
  • Gold's resilience
  • A rising VIX even while stocks also rise
  • Discrepancies between large cap stocks' implied volatility and historical volatility

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