Is the VIX dead?


The US Indexes and other global indexes just have seem to go up, up, and up! The markets are fearless right now and it has had very little sell offs. Any dips that have occurred have been bought. We call that BTFD! So with the bull market continuing and any drops being bought back means people are euphorically buying to keep getting the returns and doing what has worked. But the party does not go on forever. Warren Buffett says be fearful when others are greedy, and greedy when others are fearful. The VIX index has went under $9 this past week, and has set some record low closes as well in 2017. When markets sell off people get scared and they buy put options to protect their long stock and downside. Since we have had no sell offs the VIX just keeps going lower and lower and staying at its lows. If the US500 does decide to drop then we should see the VIX index rally up into the $12-$15 range. That would be nice because then we would have some 2 sided action in the indexes. Below is a VIX chart and you can see it is at historical lows, but I think that is going to change here before 2017 ends. Happy Trading!

Always a Student. B)
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