Announcement

Collapse
No announcement yet.

VIX index hits lowest level since June 2007

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
  • #1

    VIX index hits lowest level since June 2007

    http://www.businessinsider.com/best-...uary-12-2013-1

    There seems to be an unusual level of complacency and rest in the market and it looks like a major mispricing to me. Based on everything we know on this site that VIX should be heading back to at least the upper 30s very soon. With a bit of imagination you can also read something of a recurring pattern in the top graph that makes us overdue for a big spike. A further drop is unlikely, because the VIX has not gone much below 10 throughout it's history.

    Is there a way to trade on the basis of this?
    Last edited by NCR85; January 15, 2013, 06:20 AM.
    "It's not the end of the world, but you can see it from here." - Deus Ex HR
    Tags: None
  • #2
    Re: VIX index hits lowest level since June 2007


    http://ftalphaville.ft.com/

    in the same vein, commodity volatility has dropped to levels not seen since the 1990s!
    "It's not the end of the world, but you can see it from here." - Deus Ex HR

    Comment

    • #3
      Re: VIX index hits lowest level since June 2007

      A small update: VIX has been hovering around 11.5 in the last few days... Currently 11.33!! Insane.
      "It's not the end of the world, but you can see it from here." - Deus Ex HR

      Comment

      • #4
        Re: VIX index hits lowest level since June 2007

        Options expiry today. Nothing that unusual other than the relative level.

        Comment

        • #5
          Re: VIX index hits lowest level since June 2007

          Originally posted by NCR85 View Post
          http://www.businessinsider.com/best-...uary-12-2013-1

          There seems to be an unusual level of complacency and rest in the market and it looks like a major mispricing to me. Based on everything we know on this site that VIX should be heading back to at least the upper 30s very soon. With a bit of imagination you can also read something of a recurring pattern in the top graph that makes us overdue for a big spike. A further drop is unlikely, because the VIX has not gone much below 10 throughout it's history.

          Is there a way to trade on the basis of this?
          That seems rather flakey reasoning today. How many things have we witnessed in the financial markets and in Central Bank policies in the past half decade that have never happened "throughout history"?

          Maybe we should be asking ourselves what does it mean if the VIX drops below 10? And stays there...

          Comment

          • #6
            Re: VIX index hits lowest level since June 2007

            The professionals have been making too much shorting it and hedging the reverse.

            Comment

            • #7
              Re: VIX index hits lowest level since June 2007

              That seems rather flakey reasoning today. How many things have we witnessed in the financial markets and in Central Bank policies in the past half decade that have never happened "throughout history"?

              Maybe we should be asking ourselves what does it mean if the VIX drops below 10? And stays there...

              I used to have as a sig a quote, from I don't remember who, saying: "once in a lifetime market events have consistently happened every 5 years."

              In this case, though, it would mean pretty much the opposite of everything EJ has been warning us about in the last few years. :P

              Either that, or a very, very smooth and comfortable inflation-fueled pseudo-boom... But that's kind of a contradiction in terms.
              "It's not the end of the world, but you can see it from here." - Deus Ex HR

              Comment

              • #8
                Re: VIX index hits lowest level since June 2007

                That's okay because game quotes are the pinnacle of quotes!!

                Comment

                • #9
                  Re: VIX index hits lowest level since June 2007

                  I make an exception for Deus Ex; it's hardly game anymore. More like a work of art painted on the canvas of game-hood.

                  The quote I mentioned was from a major billionaire investment veteran, though.

                  Back to the topic:

                  Fear Index Says This Stock Market Reminiscent of October 2007

                  Posted on March 15, 2013 by John Irving| Leave a comment
                  “The euphoria among stock advisors and investors alike seems to be increasing as key stock indices proceed to move into uncharted territories. I see it all as a bearish indicator. Just look at the chart [at right] of the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), often referred to as the “fear index:”
                  The VIX is fairly close to where it was in 2007, just before one of the worst market sell-offs in history hit the key stock indices. Since the beginning of this year alone, the fear index has fallen almost 30%. This index is screaming that investors are too bullish towards the key stock indices!”
                  Read more… @ Profit Confidential


                  Via Max Keiser: http://maxkeiser.com/2013/03/15/fear...-october-2007/
                  "It's not the end of the world, but you can see it from here." - Deus Ex HR

                  Comment

                  Previous template Next
                  Working...
                  X