Tuesday, October 14, 2014

VIX preopen comment

$VIX as of last night:

It's +3SD on the weekly chart, RSI(14) of 71, 50% above its EMA(10), and 77% above its Bollinger(20) mean. Meanwhile the futures chart is flat 3-6 months out and heavily backwardated on the near end.

So either you should be prepared for a major market collapse imminently, or this level of fear has gotten stupid.

Damn damn damn damn damn it's so tempting to short $VIX right here. Even for just a 1-day reaction.

But I should watch the action in HYG for confirmation - its move has been equally stupid.

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