Thursday, August 1, 2013

Protection is Bid

I just got through posting TLT, Treasuries. In the interim, the SPY and QQQ made a small breakout from some intraday ascending triangles, the Dow made a move, but not a breakout and the IWM is still in a near perfect symmetrical triangle.

The normal correlation would be VXX or VIX Futures and TLT would move exactly opposite the SPX and move lower, however it seems there's demand for both the protection of VIX futures as evidenced by the futures not moving lower and the traditional "Flight to Safety" of Treasuries.

 This is the SPY in red intraday with a small breakout from an ascending (bullish) continuation triangle and VXX, VIX short term futures which are not moving to the downside, apparently protection is being bid in one of the few displays of actual supply and demand in the market.

This is a 1 min chart of the actual VIX Futures, also not moving any lower as they normally would with a market move higher.

TLT is also holding up and not moving lower.

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