VIX managed a .17 up move near the close today as the SPX turned in a .01 percent move. After a near 4 day holiday I would have expected the VIX to be up a bit more today but it was not the case. The weekend is usually good for bump in VIX but today is not the case. Why?
The big reason is that the liquidity providers took down IV in SPX early in the cycle last week and that pretty much killed it. 11.37 to the mid-9’s in 2 days so there was a bit of haste early in the week. This is setting up for some interesting trade in VIX futures into the end of December.
When I first walked onto a trading floor in 1989 the big thing was airline takeovers. They were the hot stocks of the day and even DJT got in the action with making a bid for American Airlines. Since then I have seen biotech, nanotech, tech, internet, 3d, emerging markets, etc, etc…. as the latest hot thing. You know when something is hot when a company goes public on the just the idea that they are going into an industry. A mini-bubble can happen within a bull market and can come and go with barely a ripple. Now we have Bitcoin (BTC).
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The Replay is here: