Volatility melts into the weekend

Whilst the equity indexes held moderate gains, the VIX melted lower into the weekend, settling -1.5% @ 12.19. The VIX looks set to remain in a tight 13/11 range for another week or two. VIX 20s do not look viable until Jan/Feb 2014. Across the week, the VIX declined by -5.5%


VIX'60min

VIX'daily3

VIX'weekly

Summary

The VIX continues to remain low, and even the mid teens now look out of range - at least for a few weeks.

VIX looks set to remain under the key 20 threshold for the remainder of the year. There looks to be a reasonable chance for a VIX spike into the low 20s when the debt ceiling issue arises next Jan/Feb.

For the VIX traders though, there seems little point in holding/picking up any VIX bullish positions, at least until mid January.

more later..on the indexes