Domain: tiger-web1.srvr.media3.us Is the VIX telling us the bottom is about to fall out? | Money Talk
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Is the VIX telling us the bottom is about to fall out?

Posted on 7/11/22 at 9:42 am
Posted by Jon Ham
Member since Jun 2011
29657 posts
Posted on 7/11/22 at 9:42 am
The Cboe Volatility Index (VIX) signals the level of fear or stress in the stock market—using the S&P 500 index as a proxy for the broad market—and hence is widely known as the “Fear Index.” The higher the VIX, the greater the level of fear and uncertainty in the market, with levels above 30 indicating tremendous uncertainty.







The VIX hasn’t been climbing up like this since right before the ‘08 crash.
Posted by Finchboyz
Choclate city
Member since May 2018
564 posts
Posted on 7/11/22 at 9:50 am to
It’s got to bottom sometime.
Posted by good_2_geaux
Member since Feb 2015
805 posts
Posted on 7/11/22 at 9:53 am to
Last week it dropped significantly. It will be interesting to see how it reacts during earnings season.

Not that my opinion has any weight, but I feel like next quarter will be worse for the big names (AAPL, AMZN, XOM) than where we are right now. The lag of consumer spending hasn’t had it’s impact on those names yet. Summer is over, inflation is holding strong, cost to borrow has held a higher rate, etc.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11953 posts
Posted on 7/11/22 at 10:17 am to
Volatility has been fascinating since the corporate debt crisis in March 2020. It's telling me that everybody is hedged. Intraday volatility has been absurd for a while (signs theirs pockets of air at most price levels aka no liquidity). Basically what would need to happen is that everybody monetizes their hedges, stop hedging because it's too expensive and then have an insolvency risk spike where there's a panic for insurance and cash. All of which are in the realm of probablity currently. Especially knowing the fiscal arm will not step in until next year.

OP: FYI, VIX is IV of M1 and M2 SPY ATM calls and puts. Not DJI.
This post was edited on 7/11/22 at 10:18 am
Posted by Jon Ham
Member since Jun 2011
29657 posts
Posted on 7/11/22 at 11:44 am to
This VIX chart shows even better how similar today’s VIX trend is to 2008.

Posted by Hussss
Helena, AL
Member since Oct 2016
7793 posts
Posted on 7/11/22 at 11:54 am to
Pete Najarian has said he has seen more VIX call buying for July, Aug., Sept. and Oct. than he has seen since 2008.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11953 posts
Posted on 7/11/22 at 3:19 pm to
Go check out last weeks Simplify Asset Management “On the Road” podcasts. Harley Bassman and Mike Green talk vol with Chris Cole, Ben Eiffert, Kris Sidial. It’s some of the best volatility content I’ve ever heard in a really long time.
Posted by Triple Bogey
19th Green
Member since May 2017
6617 posts
Posted on 7/11/22 at 5:56 pm to
Buying some $30 Vix calls tomorrow. CPI gonna come in hotter than your sisters arse.
Posted by SlidellCajun
Slidell la
Member since May 2019
16298 posts
Posted on 7/12/22 at 8:07 am to
Todays future backs it up the vix smoke signals
This post was edited on 7/12/22 at 8:08 am
Posted by go ta hell ole miss
Member since Jan 2007
14610 posts
Posted on 7/12/22 at 11:25 am to
In my opinion, energy/commodities finally rolling over I think we are getting closer to a bottom. We may not come back anytime soon, but the initial hard drive down needed to include every sector and that has been the hold out. I think the economy is about to slow, so valuations will need to be readjusted significantly before the final bottom, but we are closer now than in May when many thought we were done going down hard with peak inflation (which proved very wrong on both fronts).
Posted by castorinho
13623 posts
Member since Nov 2010
87120 posts
Posted on 7/12/22 at 11:54 am to
quote:

Go check out last weeks Simplify Asset Management “On the Road” podcasts. Harley Bassman and Mike Green talk vol with Chris Cole, Ben Eiffert, Kris Sidial. It’s some of the best volatility content I’ve ever heard in a really long time
listened to this on my way home last night. Very interesting
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21082 posts
Posted on 7/12/22 at 2:41 pm to
BOOM goes the VIX leading into tomorrow's CPI print

could get interesting the next couple weeks even though it is summertime trading
Posted by canyon
MM23
Member since Dec 2003
21901 posts
Posted on 7/12/22 at 4:18 pm to
Yes
It’s going to 0
Panic yer arse off. Sell sell sell
Posted by whodatigahbait
Uptown
Member since Oct 2007
1838 posts
Posted on 7/12/22 at 4:20 pm to
quote:

This VIX chart shows even better how similar today’s VIX trend is to 2008.


Not really, but sure whatever you say.
Posted by evil cockroach
27.98N // 86.92E
Member since Nov 2007
9053 posts
Posted on 7/13/22 at 7:33 am to
Inflation at 9.1%

From yahoo finance

The Bureau of Labor Statistics' June Consumer Price Index (CPI) reflected a year-over-year increase of 9.1% last month, up from the prior 40-year high of 8.6% in May. Consensus economists were expecting June's reading to show an 8.8% increase, according to estimates compiled by Bloomberg.
This post was edited on 7/13/22 at 7:34 am
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