Besides the airlines this cycle (AAL down $13 since earnings) AAPL has taken it on the chin with shrinking iPhone and iPad sales. The big one is the iPhone which generates most of AAPL’s dollars. Newsy rumors today that AAPL vendors are expecting much smaller orders cratered AAPL stock. This is after a rough ride from $100 after earnings. For a company that has mostly done everything right since 2000 it is a tough road.
The day after the VIX somewhat underperformed the move in the SPX and VVIX stayed bid we saw a really nice sell off and VIX pop. What was more interesting though was the VIX future expiring next Wednesday. It completely popped, normally with about a week to go and trading at a premium to the cash I would have expect the May future to perform at about 80% of the cash index. Looking at the tick chart one can clearly see that for large periods of time VX was OUTPERFORMING the cash index.
Yes, the VIX is back below 14. One might argue that only dropping to 13.63 is a bit underwhelming in the index, but thats neither here nor there. What is more interesting to me is that VVIX is not tanking with the VIX index.
The VIX got smoked today. Adjusted for the weekend the VIX was down about .90 points, which is a nice drop when its below 15. Additionally there was some preasure on the VVIX and May and June futrues. However, there is one contract that seems completely out of whack within the VIX curve: July. Notice the kink in the curve below: