OK trader buddies…I bet this is something you didn’t think would happen so soon after the Euro, Italian, Spanish, etc crises. VIX slid below 14 briefly today and what’s coming next could be a big move. Volume today is REALLY thin, about 35% normal and old time market watchers like myself are having a hard time making sense of the action. It looked like bonds were going to rule the day but that’s not the way it’s playing out. As can be seen from chart above the VIX has been acting a bit oddly while equities and bonds have just cruised along (SPY is the shaded underlying chart). The last time we got close to this level was back in April 2011, after which the VIX commenced a spike to 43+ in the course of the next 5 months. Things are different now of course but buying a little insurance might not be an unwise move.
