posted on Apr, 17 2013 @ 03:29 PM
There is a lot going on in the world, but don't forget to keep an eye on the economy, the money and the markets. People may have grown tired hearing
about the VIX, but the previous threads regarding the large wagers that the VIX hits 20 in
the next 60 days
shouldn't be brushed aside. Those bets expire on April 20th and 25th... a week away. And today the VIX high was 17.90, and
is currently up about 18%.
Coinciding with the Boston Marathon bombing, the VIX seems to getting the attention of a lot of investors all of the the sudden, Again! It should be
getting your attention as well.
Volatility's prolonged absence from the stock market appears to be coming to an abrupt end. After being largely invisible for the past nine
months - coinciding with a sharp equity rally - several signs indicate that instability is coming back.
Call options buying recently hit a three-year high for the CBOE's Volatility Index, a popular measure of market fear that usually moves in the
opposite direction of the Standard & Poor's 500 stock index.
"We saw a huge spike in call buying on the VIX, the most in a while," said Ryan Detrick, senior analyst at Schaeffer's Investment Research.
"That's not what you want to hear (because it usually happens) right before a big pullback."
This hasn't happened since January 2010 which preceded a 9% drop over only 4 weeks in the market.
"On what planet is a CBOE VIX Index reading of 14 a fair assessment of near term stock market price volatility?" Colas said in a note to clients
Wednesday. "A planet where Federal Reserve monetary policy still tightly holds the reins of capital markets, unless you have a better explanation of
this clearly anomalous reading."
Colas is spot on. Given the tremendous presence of the FED within our current economy, the horrible jobs report every month, high and under-reported
unemployment, and the troubles of the economies overseas.... how is it even possible that the VIX is constantly already above 20 (at least 20)??
Along those same lines -- did you hear about this on April 15, 2013... tax day? I'm betting you probably didn't
Insider Dealing For
Insider Trading: Congress Guts STOCK Act Reporting Requirements
VIX getting ready to take market on a ride
Remember that Congressional insider trading scandal? The one where Congress members were caught trading stocks and bonds on insider information,
an apparent crime for everyone else but Congress? Well, after a lot of public posturing leading to the passage of a reform law (with resulting
positive press coverage) – Congress is back to their old tricks.
Congress approved a bill Friday to eliminate expanded financial-disclosure reporting requirements for Senior Executive Service members, just days
before the new requirements were to go into effect.
The bill indefinitely suspends the filing requirements for 28,000 Executive Branch employees, including SES members. The Senate approved the measure
by unanimous consent Thursday evening. The House followed suit Friday.