Friday, 12 February 2016

VIX cools into the long weekend

With US equities closing significantly higher, the VIX was naturally in cooling mode, settling -9.7% @ 25.40. Near term outlook offers another foray into the sp'1900s, and that will likely equate to VIX cooling at least to the 22/20 zone. Its possible we'll briefly see the 19/18s, before the next surge in March.





*a net weekly gain of 8.6%, but the weekly candle sure is spiky, and suggestive of further cooling next week.

Suffice to add, the VIX naturally cooled into the long 3 day weekend. It would seem we'll see at least the 22/20 zone within 3-6 trading days. The only issue is whether the VIX will briefly break into the upper teens, before the next cycle.

In any case... much higher volatility levels look due this spring.

*I have eyes to be long VIX for the next cycle across March/April. VIX 40/50s look highly probable, and thus I'll probably look to pick up some VIX calls in the 25/30 strike level. For now though... there is no hurry, not least as VIX will likely cool for the next 4-6 days.

more later...on the indexes