VIX Set For Calmest September In History (Despite Nukes, Fed, Quakes, And Storms)

September has seen...

More missile tests from a nuclear-capable nation than ever before.

The biggest storms ever in America (a quarter of all Atlantic Cat 5 landfalls on record have occurred in the last two weeks).

The worst quake in Mexico in over 30 years.

US threats to cut China from the global financial system.

The Fed attempting to do what no central bank has done before.

And economic data disappointments worldwide.



After the Fed announced the monetary-policy shift sent the average to 10.78...VIX has plunged today to 9.54...


And so amid all this turmoil, if this holds up, as Bloomberg notes, VIX is headed for its lowest daily average in any September since calculations begin in 1990.

Which is odd given that the 30 year seasonal trend is very dramatic...


But what happens next?


Clock Crasher Thu, 09/21/2017 - 15:28 Permalink

What happens next?  Consolidate for weeks before either starting the long awaited bear market from hell or the real blow off top Nasdaq 7,000.Stay tuned. 

AR15AU The Duke of Ne… Thu, 09/21/2017 - 16:39 Permalink

Yes and now the funny thing they've noticed is that the notial amount they have to keep selling gets bigger, and bigger, and bigger, and bigger... just like with gold, central banks now need to sell about $3 billion in gold per day, $1 billion in silver per day, and $5 billion in VIX per day. EVERY DAY otherwise all of their other shorts up to this point implode.

In reply to by The Duke of Ne…

Clowns on Acid Thu, 09/21/2017 - 15:46 Permalink

So...Master Yellen and the rest of the Fed Stars War bar scene crew finally announce , after 10 years of 3D printing (with no value or demand behind the print) that they are going to reverse, albeit slowly, the failed program (which has never been done before...because of obvious reasons) and start to sell MBS and UST into the markets ,as well as tick rates UP....25%. Ok whats an investor to do when ther markets are at all time highs and VIX at all time lows.....I know...SELL VIX !! Brilliant...... nothing like an idea whose time has come. 

mily mily Thu, 09/21/2017 - 16:19 Permalink

Joking aside, VIX calls looks so attractive at the moment, similar pattern as in 2007, when vol was crushed and everybody and their dog was selling vol to generate yield. Remember last "vix ETPs vega" article from Morgan Stanley in july? and VIX spike shortly afterwards? And guess wha, there was another article yesterday from BofA and it's got even more ridiculous, 375mio. Technically, it starting to look like we are getting close to a spike, final confirmation would be Marko Kolanovic opening his mouth

In reply to by mily