The VIX was a clue yesterday that the market was not going to be able to sustain the rally. VIX was not down that much even though the SPX was up over 1%. Of course when SPX sold off, you had a monster volatility squeeze as those short VIX scrambled to cover. It is pretty amazing to me that the VIX went over 20 yesterday even though we are only about 2.5% below all time highs. It seems like there is very little risk tolerance at these moment in time, in front of the holiday season and end of year. Those short VIX or too long equities are cutting back exposure before the liquidity dries out.
Right now, we are close to a buyable level, around 2020 on SPX, and I will start to nibble n the long side today. I think today will look like a good buying opportunity when we look back in a week.
Subscribe to:
Post Comments (Atom)
Posts
3 comments:
I think we have lower to go when you look for example the FTSE. Maybe running out of time for a xmas rally it seems.
FTSE 100 is relentless.
Absolutely no bottom in Europe. Dragging down ES with it. Eurostoxx is getting closer to strong support around 3050. Perhaps that will stop the bleeding.
Post a Comment