First Some Important News:
I asked the CBOE's Russell Rhoad's (author of http://www.target.com/gp/detail.html/177-6899624-8572146?asin=B0050DW24E...|B0050DW24E&CPNG=&ci_src=14110944
When I went on CNBC last month (where I mentioned that the VIX was ramping up in vol), I talked about how the VIX is relative.
What does an overpriced VIX really mean? If one looks at historical volatility relative to implied volatility, the VIX is almost always to high.
The VIX got hammered today and the SPX is now trading at a higher level than it was before the S&P downgrade. So...all is well...maybe, there are a few things I like:
There were a few things I liked about this rally today:
1. Bonds actually sold off as the market rallied: this is the first time bond prices have eased since last Thursday