Friday 23 May 2014

1pm update - reflections on the VIX

US indexes are continuing to melt higher, with the Transports at new highs..and the Dow/SP set to follow. Perhaps most notable though, is the VIX, which looks set to lose the 11s..and fall into the 10s for the first time since Feb'2007 - when the property bubble peaked.


VIX,monthly


Summary

What to note?

Well, the 10s do look a given, with sp'1910/20s.

The only issue is whether single digit VIX is coming in the current multi-week equity wave. If sp'1940/60 zone in June - or more likely July, then VIX 9s will be hit.

Incredible.

*as it is, I have ZERO inclination to pick up a VIX call block until at least mid June. Even though these levels are of course extremely low.
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Notable strength: UAL +4.7%


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I'm tired....back at 2pm.
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2.27pm...ahh...soooooooo exciting afternoon, I fell asleep.

sp' set for a weekly close in the 1900s, with Dow 16600.