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
- 30Y Treasury Yield Tumbles Below 3.00% - Lowest Since February | ZeroHedge
- U.S. Prepping Case Linking North Korea To $81MM New York Fed Bank Heist | ZeroHedge
- 100 Years Ago, Russian Stocks Had A Very Bad Day | ZeroHedge
- Dijsselbloem Urged To Quit After Accusing 'Club Med' Countries Of "Wasting Money On Women & Beer" | ZeroHedge
- GOP Lawmaker: "If I Were A Betting Man, I'd Say There Won't Be A Vote Today" | ZeroHedge
- 4D Chess Alert: Rep. Nunes Confirms Trump Transition Team Was Under ‘Incidental’ Surveillance | ZeroHedge
- NOW Can We Admit the War On Terror Has Failed? | ZeroHedge
The most relevant financial news and articles from the Internets
- Fitbit sinks to an all-time low (FIT) | Business Insider
- Here is eMarketer's country-by-country guide... | Business Insider
- 7 subtle ways to network more effectively online | Business Insider
- Rex Tillerson on his role as Trump's secretary of state: 'I didn... | Business Insider
- ESPN draft expert Mel Kiper Jr has a major shakeup in which teams he is projecting to... | Business Insider
- Tillerson: 'Only a matter of time before' ISIS... | Business Insider
- Amazon has a new weapon in its war on brick-and-... | Business Insider