Volatility: Out for Lunch
The VIXY, VIX is taking a break and along with it the iPath S&P 500 VIX ST Futures ETN (VXX) continues to sink to new lows daily. The question becomes will the VIX and VXX bounce back? Should we be afraid or just ignore the warning and buy up everything?
Great 2 second analysis on the state of the VIX comes from Larry Conners at TradingMarkets.com. Here's what he has to say:
Is The VIX Too Low?
A lot has been written recently about how low the VIX is, how it has to go higher, and therefore the market has to drop. The reality is it’s not true.
If you look at the bull market from 1995-1999, you will see a steady rise in the VIX during that bull market run. Higher long-term VIX levels do not equate to lower stock prices.
Also, as you can see from the statistics below, the VIX has spent over half of its time over the past two decades (from 1992 through Tuesday) between 10-20. So the level it’s at today is very, very normal.
This doesn’t mean the VIX won’t spike from here (it certainly can). What it does mean is that those who are saying the VIX has to rise, or the market has to drop, are simply guessing and not looking at the historical facts.
Bottom line: Enjoy the break in volatility Masters, its time to enjoy the ride.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Gold & Silver Extend Losses - Biggest Drop Since 2013 | ZeroHedge
- Dollar Is Wandering Off Track | Financial Sense
- December Durable Goods: A Major Disappointment | Financial Sense
- Alexis Tsipras Most Outrageous Outburst Yet? | ZeroHedge
- Greek Stocks Crash, Bonds Plummet, Banks Have Worst Day Ever | ZeroHedge
- Baltic Dry Index: 666 | ZeroHedge
- WTF Chart Of The Day: Baltic Dry Index Crashes To Lowest In 29 Years | ZeroHedge
The most relevant financial news and articles from the Internets
- Unusual 11 Mid-... | StreetInsider.com
- Facebook's Earnings by the Numbers: A Look at the Advertising Giant's Record Results | TheStreet.com
- ... | StreetInsider.com
- The Germans Are Making The Same Huge Mistake Bill Clinton Made | Business Insider
- Here Comes The Fed ... (DIA, SPY, QQQ, TLT, IWM) | Business Insider
- The History Of North American Rule In One Amazing GIF | Business Insider
- Microsoft May Have Just Released The Best Gmail App For The... | Business Insider