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VIX Looks Like It Wants to Pop

While the SPX closed well off its lows and the VIX well off its highs, I found it interesting that SPX made the much bigger move.  In addition it still managed to close below the Jan 20 close (while not toughing the lows from that day).  At this point I think as I look at how equities and vol are moving,  VIX looks like it really wants to blow out.  Maybe not to 40 like in August, but I think we are going to see an intra day high that might be near levels we saw in January,  maybe much higher....certainly higher than where we are today.

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GOOG Skew is Flat

GOOGLE announced earingis on Monday and blew the doors off.  Then after breaking the AAPL strong hold on highest market cap stock it has since completely died.  What is interesting is how option traders are playing the move.  Take a look at the skew curve in GOOG options in Feb and March ordinary:

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LivevolX for Lightspeed

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VIX Futures Remain Stubbornly Backward

On Friday the market rallied 50 dollars, and the VIX sold off 2 bucks...into a weekend.  Then yesterday the market sold of 1 point and the VIX gave away a little more.  Today,  the SPX sold of 35 bucks,  basically the lows of Friday,  and the VIX was up about 2.00 even.  What gives?  Well I think the answer lies in the futures.  While the VIX cash has remained, save .02%, above 20, but managed to fall back into contango relative to the VIX futures and VXV.  The VIX futrures have been trading in a backward state out to may the entire rally.  Today's did not help.

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