With equities closing higher for a second consecutive day, the VIX was naturally whacked lower. Based on many previous cycles, 2-3 weeks of a subdued VIX appear likely. By mid August though, there will be a very high threat of a renewed.. and particularly powerful surge in market volatility.
*note the upper bollinger on the giant monthly cycle - currently around the key 20 threshold.. where the VIX got stuck last Thursday.
Suffice to say, I am expecting the VIX to see some sustained action in the 20s in the late summer/early Autumn. Whether we briefly break into the 30s... difficult to say.
For now.. I am content to watch VIX.. but will likely pick up some Sept/Oct option calls in early August.
Tuesday will see retail sales, import/export prices, and business inventories.
*fed official George will speak.. but that is not until after the close.
Goodnight from London