Kind of an ugly day in the market or make that an ugly week for the longs. For the first time in a while I am seeing the move up in VIX outpace the drop in stocks. Yeah we had a 1% move but 20 VIX seems like there is something to worry about. The two biggies are rates and oil. Let’s talk the oil producers.
XOP is up on the day on a down day for oil and stocks in general. Granted the ETF has been hit with the ugly stick but even AMZN is down today. The craptastic names should be doing worse. Lo and behold take a look at the volume in COG.
VIX put in a new low yesterday and seems like it wants to get back there.
I toss that out there of course and I don’t mean VIX. What I do mean is the ATM volatility for the SPX. With the Greece deal on and off again the one thing that has been consistent over the last two days is the total immolation in implied volatility. The 9 handle for SPX ATM IV is a tough barrier to break because it means traders are actively hitting option bids on the downside to drive the ATM lower. We are almost there.
The best course for Option Income Trading Coming Feb 28th
I don’t know what the rally was from, a pop in oil, AAPL to the moon or a de-escalation in the Ukraine but a rally we had. Stocks fallen into a pattern of rally and retreat and today was no different. The last downturn was a mix of Greek elections and 10% of the market cap of the SPX going into the ash can with oil. Tech is leading now and the market loves tech leadership. NDX 5000, a sop to swinging 90’s is now a realistic target.