One thing that just hit my radar is the VVIX
The VIX of VIX is now at the lowest level since early June.
It got near 100 in early June, but has not really been much lower since the pandemic began.
At the same time we are seeing the market start to slow down…if only a touch.
SPX HV has fallen to sub 25 in the last week.
A falling VIX, falling realized volatility, and the falling VVIX is usually a sign of a market that is become more boring
Thus despite the covid bomb, maybe the market is not going to dive.
In that scenario, we could see XLI, XLF, and XLE rally while the ‘big 5 (aapl msft googl, amzn, fb)’ sell off.
We shall see.
The VIX Traffic Light is Red (orange).
Your Only Option,
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