My little market neutral index portfolio illustrates the crumbing VIX (shaded background chart) relative to the larger market. TLT did make a bullish spurt out of the open and the afternoon saw it resume a downtrend in sympathy with the VIX. Apple was the catalyst for the QQQs as peer the past few days and it closed at a new high, if only to confound the skeptics. Market volume was 35-50% normal as traders weigh the possible opportunities of the FED’s upcoming meeting. The daily ATR (average trading rang)e of many high volume issues as fallen about 30-50% in the last 2 months (GE was .41 and is now .27, for example) and option premiums are reflecting that volatility crush. Maybe Bill Gross was right.
