I am very weary of market here. I would expect market to be retesting 1082 SPX, but it appears to want to hover near 1092 ish to 1100.
VIX slowly getting "cheap" again imo. Not real "cheap" like it was at 17, but definitely within striking range of "cheap."
what's the best way to "trade" VIX? by "the best way to trade" i mean something that mimics VIX daily movements the best, sufficiently liquid (and does not cost much in comm). I imagine it is via some option combo but which one(s)?
Spread VIX futures. Be aware that this is extremely complex. You would be trading a derivative of a derivative of a derivative.
FOMC meeting. Zero delta of IR change. Language will likely be almost identical to last time, with minor inconsequential changes, imo. I am going to hold steady at 10% chance of a FED hike, since it looks like my March/April target to raise rates seems almost impossible unless something dramatic changes soon. Who could have anticipated that banks would not lend to small business creating jobs. Where is VC money when you need it? Instead, government should create jobs, high tech jobs. What about a national high speed rail system (using superconductors) to anticipate consitant > $100++ oil within the next five years? What about more nuclear power plants? What about modernizing the electric grid? If government sponsored health-care passes, what about hiring programmers to make that system run high-tech? What about aggressive tax breaks for high tech education pursuits? I am close to being on the edge of believing that unless government starts taking into it's own hands the creation of jobs, the private sector has almost no incentive or desire to do so.