Some of you might be wondering why Vix is down today over 4% today, while markets are all in the red. This happens sometimes when Vix is at elevated levels, and the market calms notably. Vix has a very erratic negative correlation with equities. Every once in a while, when we're seeing Vix above 30-40 let's say, like we were recently, and the market goes from falling 4-5% per day, to falling just 1-2% per day, on the latter end of the sell-off Vix will be down notably, as markets also fall 1-2%. Realized vol is falling, and so regardless of the fact that markets are down, vix can also be down.
Good luck today guys, and enjoy your weekend!
If you enjoyed today's analysis, please hit the Like button and subscribe to our profile. The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.
I hope everyone had a great week. It was certainly an interesting one, if not a historic week. It's time to unwind, and relax with a cold drink. Until next week guys, enjoy your weekend! Cheers, Michael.