Around noon today I was working with a client in a mentoring session discussing risk managment when something strange happened. The SPX rallied about 3 handles...not strange, but with that rally came an absolute woodshed style THWACK to VIX and VIX futures. In a matter of minutes VIX went from Flat on the day to down .80, ending down about 1.25. VIX futures for there part gave away almost as much in a short period of time falling from 20 back to 19.50 i minutes.
Look for our next Saturday Webinar soon!
As 2015 draws to a close on low volume and kind of ugly action, I try to figure out what the next year is going to be like in terms of volatility and the VIX. Some general observations from this year:
VIX as of today is up a point with stocks around the same place from last year.
We had another Flash Crash in August for no real reason.