Volatility Snapshot: VIX Crush
Good Afternoon Traders,
The VIX was crushed once again this afternoon, slaying UVXY bears. With the VIX back below 10 we once again are cautious with our short exposure and have fully gone to cash while we wait for a new pop.
The VIX finshed the day at 9.58 with contango back at an elevated 13.23%.
The news front seems be suggesting Trump total victory is imminent. Roy Moore is 2 points ahead per the polls, meaning he likely leads by 20 points and the Mueller notes continue to point towards untoward political bias/corruption. The jobs number was strong and tax reform looks to be developing nicely. The Fed is key here and if they continue to hold a relatively dovish posture, this market will continue to grind higher.
We are watching the SPX previous high around $2661 and the 50 hour moving average at $2640 for clues as to the markets next move. UVXY does not appear to be done selling off, but we chose to err on the side of caution and close our puts.
We are developing an XIV intraday approach that we are eager to share with readers. More details will be provided over the coming weeks.