“Quick, Buy That (Macro) Dip!”

Earlier today, we noted that the correlation between implied vol and equities is breaking down as traders buy cheap protection on expected surges/plunges while the market continues to grind ever higher. As WSJ writes, "cash flooding in from private investors has pushed up the market overall, but has also led professionals to worry a little more about the risks–both of a meltdown and, conceivably, a 'melt-up,' when the market soars 10% or more in short order. The prospect of either big loss