Any down day in a week for the SPX that does not see many is significant for VIX. Not that VIX moves a ton yet but for what it sets up going forward. For VIX traders VIX should go up when SPX drops but this is really not a big move on a percentage basis for SPX. After all, the move was less than .50% for SPX but a full 1 point pop in VIX. Even in low vol the VIX cash moved seem a bit rosey.
With all the ’87 Crash reminiscing I figured it was time to reach into my nostalgia bucket and come up with IBM. The early 90s were mostly about the death of IBM and rise of MSFT in tech. I remember traders selling calls upon calls in IBM as it went into the dustbin for several years as the mainframe went the way of the Dodo. Seems over the last several years IBM has had the same issue as in the past with falling revenue while still being somewhat profitable. Wall Street hates that.
For a moment there I thought hell froze over as a bi-partisan plan for the AHCA might keep it running for two more years. Keep buying the insurance companies I guess. Today was such a snooze that I have to go observational. NFLX was not enough to excite although 70% stock price gains this year are exciting enough. Let’s talk VIX because it did something slightly not normal but normal today.
charts from VIXcentral.com