S&P Turns Green for Five Days—So Why Is the VIX Rising Too?
Stocks up, volatility up… something here isn’t adding up, and traders are starting to notice.
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I know silver didn’t back off except intraday on Tuesday but I have another tidbit to share with you, just to show you how wild this trading has become.
ZSL is an ETF to be short Silver. SLV is an ETF to be long Silver. If we add up the volume traded in those two ETFs, both of which trade on the NYSE, it clocks in at approximately 16% of all the volume traded on the NYSE Tuesday. Is silver really the most important ‘stock’ out there? These days it is.
Surprising to me is the fact that the market has yawned at the massive move in the US dollar this week. Sure Dollar/Yen has been huge but the overall move in the dollar vs almost all other currencies has not even given the market pause. That is highly unusual.
Something else unusual is worth pointing out. The S&P has been green for five days; it hasn’t gone to six consecutive green days since early October (on the seventh day it was down). And yet for the last three days the VIX too has been green.
And with the S&P back up kissing 7000 the VIX is well off the lows. I am no expert in the VIX and I don’t even play one on TV but this too has caught my eye.
Then there is the put/call ratio. It has fallen to .74. Don’t you find it curious that it took five straight up days to get folks to load up on calls again? Recall we had a low reading (.73) on Friday January 16th. The next trading day the S&P lost two percent.
But my point is have folks thrown caution to the wind on the day before the FOMC meets and opines, on the fifth straight up day, all because they figure the Mega caps will give us great earnings in the next few days?
Sure I’m speculating that the call buying is in the mega caps. Heck maybe it’s in Silver! But my point is that is once again highly complacent.
And yet not much changed aside from this. Most of the indicators have barely moved because breadth has chopped around. But at the risk of being disappointed once again I do want to point out that the Utes have been creeping higher since the first week of January, just slowly improving. Have you noticed, no one even talks about them anymore. That’s always the best time to look at them. Former fan favorites that have corrected so the fans get silent.
And yes, I know I have been saying this about the Utes for six weeks now but a broken clock is right twice a day!
