Market down 1.75%, VIX only up 2.02% ?? huh?

Discussion in 'Trading' started by matador04, Nov 19, 2007.

  1. With the S&P down that much, shouldn't one expect the VIX to spike a little more than 2.02%?

    Please enlighten me...
     
  2. rc5781

    rc5781

    yes, i was wondering this too...anyone??
     
  3. Just an opinion, but maybe low volume + orderly selloff, e.g not hedge fund and quant dumping, but institutional and HNW individuals. Vix usually spikes up when there are high order flows on both sides of the trade.
     
  4. In a solid trend either up or down, isn't the VIX normally low?
     
  5. I thought about that; it wasn't as choppy as last week...so I suppose that would make sense
     
  6. holidays season
     
  7. bh_prop

    bh_prop


    Yes, that is about the only reason I can come up with myself. All things being equal, VIX should be higher on a Monday, to be down over 200 Dow points and only see 1/2 point VIX rise is downright shocking. But Thanksgiving weekend does need to be priced out at some point this week, today just seemed a little early.
     
  8. why does it matter? Vix is nearly worthless indicator.
     
  9. not only that but the VIX traded down on the day, i.e. it closed LOWER than its opened.

    Pretty wierd stuff.

    fwiw...I disagree about the VIX being worthless, I think the VIX has very good value as a secondary market opinion.

    Everyone trades differently and that's fine but I love the VIX.
     
  10. the vix is the cherry on top of all your other data in regards to macro moves
     
    #10     Nov 19, 2007