I Warned You About This

Tuesday was a giant ‘rotation’ day.
All day we saw money coming out of the mega caps like AAPL, MSFT, AMZN, and GOOGL and into the industrials.
The XLI was up pretty substantially at a time the NDX was down 1%.
Yet interestingly, the VIX did not react to the move in the industrials which ended the day up, it reacted to the move in the mega caps.
Think about it, 5 stocks caused the VIX to move from near 21, to 25 at one point.
Thus on a day where there were MORE advancers than decliners on the NYSE, the VIX did this:

The VIX almost touched 25, and there were MORE STOCKS UP THEN DOWN.
For those looking for risks in the market, it is probably NOT from CV19…
It is probably from the Hedge Fund Hotels that are the Big 5.
I think the VIX is probably going to ease off over the next couple of days…
But the fact that 5 stocks could pull the VIX up 2 points is telling.
The VIX Light is Red
Your Only Option,
Mark Sebastian

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