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VIX Backwardation a One Off Event?

Today,  the big news in the option world will be that the VIX went backward cash-dec future and is essentially flat against January.  

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FXE Puts Look Like a Buy

I am not a big player in the FX market, however, I do watch the currency trust options semi-regularly.  For those that have not been following the trade between the US Dollar and the Euro, the climb the Euro has had against the dollar has been astoudning.  I would have thought the dollar would have gotten stronger against the Euro with Taper talk and stimulus out of Europe.   But, take a look at the chart:

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What will the Fed do?

Thank you to all who attended the course on Saturday.

Overall today is a quiet day after the big NFP report on Friday.  Stocks are still moving in a positive direction with the SPY just .40 or so from an all-time high.  That begs the question, is time for the FOMC to take the punch bowl away from the party?

There is never a good time to say the gig is up to a dependent party, but the Fed has to at some point.  If Congress can get a deal done like normal folks, that would go a long way to softening the blow.  VIX is up just fractionally today, about .07 which is normal on a Monday with the Weekend Effect.

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A volatility crush on the upside

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Despite the headwinds of the Shutdown and the rollout of Obamacare, employers are hiring again.  An economy that is growing and creating jobs is a good thing.  While there was some concern about the Taper, that does not look like it will happen soon.  That could change next week, but the soft landing is what the market is looking at.

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Vol drops early into NFP

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We wrote yesterday that we expected IV to come in after the NFP report on Friday.  Essentially, wait until Thursday and find a way to short VIX with limited risk.  The ADP number today was very good.  Usually that means the NFP will be but that is not a no-brainer.

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VIX futures gettin' lively

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A couple of days of selling and there was almost a mini-panic.  VIX traded over 15 today on the biggest run in two weeks.  While it backed off some on the close, at midday it was humming.  The thought of a good payroll report (NFP) and the end of QE3 is putting the fear into the 1800 SPX.  The last Taper fear cost us around 4-5% in the spring.

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TLT Vol and SPY Vol: Chicken and Egg

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VIX Vol Officially Crushed

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Yes, the VIX is 'low' right now (and likely going lower),  but what is even cheaper than VIX?  VVIX  check out the IV 30 of VIX options from Livevol

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ZNGA juice is dirt cheap

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VIX is Overpriced

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