Friday, 29 January 2016

VIX cools into end month

With equity indexes ending the month on a significantly positive note, the VIX naturally melted lower into the weekend, settling -9.9% @ 20.20. Across the week, the VIX declined by -9.6%. For January, a net monthly gain of 10.9%, having seen a peak of 32.09.






*a rare look at the monthly cycle. Volatility bulls have their first decent chance at a hyper-ramp this spring. Considering the Aug'24th low of sp'1867 saw an opening print of VIX 53.29... the 60s look possible on a sustained 10-15 day down wave to the sp'1600s.

Suffice to add, as equities continue a counter rally from the sp'1812 low, the VIX is naturally broadly cooling.

With a closing hour intra low of 19.50, the 18s look probable if sp'1960/70s. I do not expect sustained action in the mid/low teens until late summer at the earliest.

more later... on the indexes