One thing I always like to keep an eye on is how 'high fliers' perform in sell offs. In these most recent sell offs 'loved' names like TSLA, AMZN, GPRO, and AAPL have gotten a bit of a smoosh. One 'loved name' that did exceptionally well in this sell off is FB. While AAPL dipped to 108, and GPRO back to 55, FB stayed somewhat healthy never breaking 74.
I have been saying for a few days that the coorelation between Oil and SPX is kind of dumb and non sensical. Close observation of the coorelation shows that often SPX sells off with Oil, but once Oil stops selling off SPX would rally.
Now take a look at what happened today. The SPX rallied with Oil mid-morning with a high in the SPX over 18 handles. Then, as WTI and USO sat, the SPX dove on Russia fears and maybe the Fed.
Henry Schwartz of Trade-Alert passed along a pretty nifty chart that shows the type of move the market has had in the last 3 days. It is a chart of term strucutre in VIX and implied volatility of VIX options.
Today, the SPX settled down .49 points. This will show up as essentially as a 0 in realized volatility terms as measured by GARCH which is what most brokerage firms use to measure HV. But does that tell the whole story?
While today's sell off was actually a bit of a 'meh' there was one group of stocks that really got slapped around today: Loved Stocks. I loved stock is a stock that consistently is the most talked about on not only the networks but on Twitter. Take a look at the performance of some of the most loved stocks:
Loved Equities have higher jumps in IV today but the volume is light (flat).
The S&P 500 has blown up higher and is now closer to 2100 than 2000. Yet the VIX continues to be firm holding above 13.5, even in a somewhat low realized vol enviornment. It is pretty clear in the chart below:
1. As we rally longs are hedging. This is the bull case. Baseically, those with long positions like being long and are buying hedges with the market at all time highs and the VIX at, relative to longer term trends is somewhat low.