Tuesday, March 13, 2012

VIX Hits 4+ year new low-What's wrong with this picture?

I saw earlier the VIX hit a 4 year new low...
 Unless I missed something, 6/20/07 was the last time the VIX was lower, nearly a 5 year new low.

Like one of those "Where's Waldo" pictures, what's wrong with this picture?

The VIX is in green, the SPY in red...

Here's a hint...

One other thing...
Several years back when there was still money in the market (unprecedented amounts have fled the market the last year or two), a move like this would be a 3+% move, while the Dow is under 1% today, if that's not parabolic, I'm not sure what is. Just to be fair, I've been suspicious of parabolic moves up and down, not just up. Too many times I have seen how they end.

With the VIX looking the way it does, I can't wait for tonight's CBOE update of the SKEW, which is interesting that it shot up that much yesterday on Op-Ex. Week.

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