A 3x Leveraged ETF Just Spiked 96.5% While the VIX Slept at 18.90. That Has Never Happened.
SOXS, a 3x inverse semiconductor ETF, just printed a 96.5% spike while the VIX sat at a sleepy 18.90 — a combination that has never occurred in market history. Most will blame the Japan earthquake. The real story is structural: leveraged ETF rebalancing mechanics amplified a sector collapse while the broader volatility complex stayed asleep, signaling either dangerous complacency or a contained shock teetering on the edge of cascade.