SPY

VVIX Ignore Sell Off

Despite the sell off that ammounted to wiping out all of yesterday's gains and a VIX that wiped out most of yesterday's losses (weekend adjusted), one thing stood out to me...the total lack of demand for VIX options.  Through out the day I saw very few serious call buyers of VIX, in addtion I really didnt seem many put buyers in SPX.  Adjusted for price,  VIX really didn't do much today, maybe that is part of the reason things were so anemic.  Stock volume was shallow yesterday, option volume shallow today.  In fact, about the only trading I saw was upside call buying.  

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Traders Are Trying to Kill VOL...

The one thing that has been stunning about this sell off has been the total lack of volatility as seen in the VIX.  The VIX barely touched over 30 on Friday despite the middle of a 60 point sell off and a new low below levels from August.  By the end of the day the VIX closed around 27.  Today we saw the same thing,  the SPX rocketed higher on the open and VIX got killed.  Then by days end the entire rally was gone, and in fact the SPX had been down as much at 15 at one point.  But take a look at VIX with the market up 14 and the market flat...coming off a huge sell off.

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