The behavior of emerging market volatility has confounded and confused me to no end this year. It appeared to me that both VXEEM and VXEWZ were taking more of a lead from the US stock market (VIX) than from the behavior of their own markets. Well this week EEM and EWZ were both basically flat for the week, but their respective volatility indexes and all futures contracts were higher on the week. If VIX had climbed I would have based it on that. A little digging into news shows some growing concerns regarding the Chinese market. VXEEM was up almost 8% and I assume it is regarding a move that is on the horizon and not a reaction to last week’s market action.