Friday, 23 May 2014

Volatility continues to melt lower

With equities breaking new historic highs, the VIX continued to melt lower, settling -5.6% @ 11.36. Near term outlook is for VIX to remain very low, with a further break to the 10s..or even 9s by mid June - not least if sp'1920s or higher. Across the week, the VIX declined -8.7%





*I thought I'd provide another look at the giant monthly, which really does give some perspective on just how bizarre the last few years have been.

So..I do expect VIX to remain low for a further few weeks. I'm really not expecting any major spike until the next FOMC of June'18. A return to the VIX 20s seems highly probable this summer, and I will most certainly be looking to pick up a large VIX call block...but not....yet.

If the last few years have taught us anything, there is no hurry, right?

more later on the indexes...