This was a low volume day due to holiday. As well as a couple of hundred stocks halted from even trading today. The halted stocks will be trading tomorrow and market trading volume will be back to normal post holiday levels Tues. I'm not sure I'd read much into the VIX or market behavior today.
This is why I thought the VIX was too low. look how quickly the markets are correcting. The VIX is still not pricing in the fiscal cliff though.
Hope discount. Right now there is a Hope discount on the VIX, The hope that the idiots in the whitehouse/congress can actually get together and avoid the fiscal cliff. When the hope fades, then the VIX will hit the 30's
Did you say the 30's??? Nice to know there are optimists lurking here. Or did you mean to imply the VIX will simply start there? We've already had one downgrade of US debt, with a warning about another one.
Are you an idiot? The VIX is accurately pricing in the current volatility in the market, even during this selloff. In fact, the VIX is and has been trading at a pretty steep premium for the past year. A few months back it was the largest premium we've ever seen. Has nothing to do with hope dude, it has to do with basic math.
A few months ago??? It was over 80 a few years ago. It's currently a lot closer to it's multi year low than it's multi year high. http://finance.yahoo.com/q/bc?s=^VIX&t=5y&l=on&z=l&q=b&c=
I'm referring to the implied vol of SPX vs it's 30 day stat vol. The premiums this year have been at record levels.
Hope discount my ass. Markets wouldn't be this efficient operating on "hope". If you think the VIX is priced wrongly then go ahead and buy it, see where it lands you. The fiscal cliff is just bullshit, as usual they'll just end up kicking the can down the road. The markets know this and so does every rational human being out there. Of course the medias need something to keep us fearful and sheep buy into it time and time again.
I am going to wait patiently and start shorting puts when the VIX jumps to the mid 20s 30's You guys seem to forget how good our politicians are at fucking things up and roiling the markets. I am going to sit like a vulture patiently and wait for the chaos that our morons in congress/white house will bring and make money. So for now I will watch carefully and keep my rifle primed for the kill.
http://www.cnbc.com/id/49845551 If the atmosphere this week in Chicago was any indication, professional investors remain largely in denial that the looming fiscal disaster in Washington will come to very much.