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VIX Closes At 5-Month Lows, BofA Warns Volatility Term Structure Is A "Significant Concern"
At 12.58, VIX closed today at its lowest level since December 4th 2014 (which makes perfect sense, given the forward-looking volatility implied by each and every macro data item and earnings release in the next month). However, as BofA notes, the VIX term structure (VXV / VIX) suggests "significant concern" about this advance in stocks being sustained.
VIX at 5 month lows...
Today's close above 1.2 in the VXV/VIX ratio is significant concern.
Historically, the market has struggled to hold its gains when this ratio closes above 1.2.
Charts: Bloomberg
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Hey BOA! FUCK YOU MOTHERFUCKERS!!!!!!
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
In my experience when the markets go down it's better to hold SPY puts than VXX calls. If you are determined to play VXX, never hold VXX for more than a day or two - the decay will kill you.
sheeeeeeeeit dat aint nuttin my ngggaaaa i be making over 9000 a month working just quarter time nggggggaa whaaaaaaaa skrr skrr
I'm of course tempted to load up on VIX futuers or OOTM VXX options - I'm that dumb.
Fortunately, the US markets have punished me sufficiently in the past to drive home the point that the market doesn't exist to make little people like me any money. Even a knucle-dragger like me finally understands that little people can't and won't ever make money betting against the irrationality of the market. If enough little people are on the right side of a trade, then they'll just change the rules. My biggest worry nowadays is how to insulate my money from the market, not how to participate in its madness.
your not betting against the irrationality of the market. you are betting against powers that will not let the market go down.
clearly the market is irrational, all you have to do to know that is look at the tape and read ZH. which you do.
patience is all i can offer. hopefully, someday, our side will win. but until something happens to rock the boat and prompt the Big Boys to sell, all we can do is wait.
if the Republicans win the Presidency, Obama's home girl Yellen will become a hawk and jack rates much faster
or if Clinton wins lol
Me and you both...
"Historically" thats funny these days.
America is waiting with stinking bated breath Hillary's announcement..
Not a historical peep about the scandles/breeches of protocol/memory lapses/or deleted emails..... onward dipshits.
VXX options.
Think about that for a moment.
A derivative (options) of a derivative (VXX) of a derivative index (VIX.IN) of an index (SPX.IN). Any wonder why it has so much decay?
"My biggest worry nowadays is how to insulate my money from the market, not how to participate in its madness."
it's not that hard, if you think about it. not all assets are stores of value, but some things will always be valuable. the 1st & most important thing is converting money out of fiat & extracting it from the banking system. then you can find those things that will hold value even while monetary authorities dive deeper into their misguided experiments. even in this 'everything is mispriced' environment you will find a few things the market hasn't fully appreciated because they are so mundane.
Let's see how extreme William Dudley and the NY Fed trading desk take this market insanity.
I love VIX ETFs
Please continue to bet that tomorrow is more certain than today.
If one were to have bought VIX Calls or any VIX ETF/ETN during any of those red down arrows, they would currently be underwater...and losing $ daily. Do you hear me UVXY and TVIX Bagholders? Don't fight the FED. You will lose!
VIX options - short em if you got em.
The one thing that gives me hope is that a lot of bears have thrown in the towel and are now advocating patience. Most bears have been effectively neutered. When the market goes 10% down, they'll say no worries, its a trap, you've seen what the maniacal Fed has done before. At 20% down, they'all say watch the Fed any day. At 30% down, they'll say, maybe I was wrong. At 40% down, they'll say maybe I waited too long now. At 50% down, they'll say oh well I missed it. Meanwhile, at least we can take solace in that the bulls will have bought all the way down expecting the Fed to have backstopped. At least that will be funny.