Positive correlation between S&P 500 and VIX

Discussion in 'Trading' started by jimmyjazz, Nov 30, 2017.

  1. Can you expand on that? I thought the VIX was reflective of a weighted blend of SPX option prices.
     
    #11     Nov 30, 2017
  2. FSU

    FSU

    Jimmy,
    I have been trading this spread off and on for many years (vix future vs emini spx future). Every now and then you will see a day like today. When you have an extreme rally and the vix goes up. I was looking to sell the vix future and sell the emini, but never pulled the trigger. I have seen it continue for a few days, so there is a lot of risk in the spread.
     
    #12     Nov 30, 2017
  3. FSU

    FSU

    This is what the VIX index is based on. The VIX future sometimes has a mind of its own.
     
    #13     Nov 30, 2017
  4. But he said the VIX tracks the VIX futures?
     
    #14     Nov 30, 2017
  5. Vix won, market sold off nicely
     
    #15     Nov 30, 2017
  6. Uh, what? The market was up big today.
     
    #16     Nov 30, 2017
  7. It’s actually VIX options that are derived from /VX futures. Not the VIX itself. My mistake
     
    #17     Nov 30, 2017
  8. toc

    toc

    Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis

    http://www.marketoracle.co.uk/Article60890.html

    Not fear mongering but like the Fed Balance Sheet unwind argument.

    "Ample low-cost liquidity drives asset prices higher. That’s not controversial. It makes perfect sense that the withdrawal of ample low-cost liquidity would also impact asset prices in the opposite direction.


    The Fed has even given us a schedule by which it will unwind its balance sheet. Michael’s chart gives us a sense of how far the S&P 500 could drop if the Fed unwinds as planned and if the relationship between liquidity and stock prices persists. Either or both of those could change; but if they don't, the S&P 500 could fall 50% in the next few years."
     
    #18     Dec 1, 2017