A diary of the thought process behind my investment decisions
vix is parabolic here which implies a last washout whether that's this afternoon or a gap down into quadruple witching. no coincidence that the greek panic & resolution will coincide with expiration. whichever way the short term herd is positioned should be slaughtered by 4pm fri.
as my bubbe used to say about matadors: nischt gut for the bulls
It looks like we got our answer on the VIX not budging.
I just got back to my desk and at this moment visibly self-explanatory. As a former options mmhave been relying on the vix – rvx – vxn aspredictor and most of the time they work. The vix was rangebound in the past 2weeks bc the selloff is orderly and relatively slow, but since the vix not just put call ratiobut more like speed at this point the speedof the market should accelerateThere are times when the the market is decliningwith declining vix bc of the nature of its speed indicator. ie from 12/17/08 until 12/30/08 there was a dramatic fall in the vix while the mkt was also falling.
Well, it's budging now...
(June 2nd somebody bought 50000 vix July 35 calls paying 32.5 cents in the vix pit. Up a cool 2.8million as of today)
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