Volatility Snapshot: UVXY Pulls Back from Highs
Good Afternoon Traders,
Markets finished relatively flat on the day with UVXY pulling back off its highs. The VIX finished the day at 11.02 with contango at 11.49%.
The VXST/VIX ratio returned to slightly below 1 today despite the inability of the markets to stage a rally. That said, VXST still remain elevated compared to its 20 day moving average. Frankly, VXST looks to be in wait and see mode here with regard to tax reform, debt ceiling and other Trump related issues.
The SPX did not bounce much off $2629, its 50 hour moving average. We are still focused on the $2620 and $2600 levels as possible areas of support over the next few days.
We remain in wait-and-see mode along with markets, hoping for this train to shit or get off the pot so to speak. If we are going to sell-off, we would prefer the pain be delivered in bandaid removal fashion, at which time we will reload our short position on UVXY.