Stop Looking Only at the VIX! The “Volatility Trinity” That Predicts Crashes
- In this masterclass episode of Traders of the World, Flavio Lemos and Enrico Cozzolino welcome Sowmi Krishnamurthy, CMT.
- After a 35-year career at Mobil/ExxonMobil (including 8 years trading physical and paper oil in the Asia Pacific), Sowmi founded SK Market Insights.
- He views market data and volatility through the analytical lens of chemical reactions.Grab your notepad and learn:The Volatility Trinity: Why the VIX alone isn’t enough, and how combining it with VVIX and the Futures Term Structure reveals the market’s true long-term expectations.
- Market Regimes: His exact framework for identifying safe sustained rallies vs. dangerous corrections.
- Golf & Trading: The ultimate discipline of “driving for show and putting for dough”—why managing the trade is where the real money is made.
- The Isaac Newton Trap: Why brilliant minds (like Newton during the South Sea bubble) lose money to FOMO, and the hard lesson Sowmi learned when WorldCom went to zero.
- ⏱️ Time Stamps
- 0:00:00 – Teaser: The universal language of the markets
- 0:00:42 – Intro: Flavio Lemos & Co-host Enrico Cozzolino, CMT
- 0:02:30 – Introducing Sowmi Krishnamurthy: 35 years at ExxonMobil & CMT
- 0:04:33 – Molecules to Markets: A Chemical Engineer’s view on Volatility
- 0:07:15 – Crucial Risk Management lessons from Institutional Oil Trading
- 0:10:23 – The “Volatility Trinity”: Why looking only at the VIX is a trap
- 0:14:19 – Trading Volatility as an Asset Class (VRP Capture)
- 0:16:42 – The 4 Market Regimes: Identifying Rallies vs. Corrections
- 0:30:00 – Single Stock Case Study (ADM): Double Tops & Bollinger Bands
- 0:37:14 – The Golf Analogy: “Drive for show, putt for dough” (Trade Management)
- 0:38:45 – Sowmi’s Best & Worst Trades: Surviving the WorldCom collapse
- 0:42:24 – Even Geniuses Lose: Isaac Newton, the South Sea Bubble & Stop-Losses
- 0:44:28 – Where to find SK Market Insights and Conclusion
This information is for educative purposes only. If you have any questions or seek clarification please feel free to contact me at info@skmarketisghts.com.
Sowmi Krishnamurthy Ph. D., CMT
SK Market Insights Ltd
