Monday, 12 October 2015

VIX cools for a tenth day

Whilst equities traded very quietly on what was a semi-holiday session, the VIX continued to cool, settling lower for the tenth consecutive day, -5.3% @ 16.17. Near term outlook is for continued equity upside, which should equate to VIX in the 15/14s.




*special note: the weekly MACD (blue bar histogram) cycle, which has now seen a bearish cross... negative cycle.. for the first time since early August.

So.. VIX saw yet another net daily decline.. ten days down.. and looking back.. I can't find any such downside run in the past ten years.

In some ways, it could be argued as a key underlying signal that VIX 40/30s (never mind the 50s) are now out of range for the remainder of the year.

I realise though, many of the equity bears will continue to call the recent rally from sp'1867 as largely about short-covering.

Regardless of which side you might be inclined to believe, the VIX has now cooled from 53.29 (Aug 24th) to 16.15... this afternoon.

*I have ZERO interest in being long-VIX in the immediate term.. and probably until the next FOMC of Oct'28th

more later.. on the indexes