VIX Fears Election…Yikes!

For the last 6 months the VIX complex has been fearing the US Presidential Election.  

Shocker here:

The market, I think, does not really care about who wins.

In general I think both candidates are not seen as ‘bad’ for stocks.

What the market WAS worried about was a lack of resolution surrounding the election.

While the market appears to still think that is a risk,  the overall fear of that happening appears to be evaporating.   Take a look at what the VIX complex has done in the last week:

The VIX has fallen…

The futures curve has gotten annihilated…  

…and flattened up at the same time!

Thus,  overall fear is down, BUT there is still a decent ‘kink’ in the curve for the November election.

Here’s the thing, the most interesting trade is that the “kink,” ie fear, gets taken care of BEFORE the actual election.

The VIX light is Yellow

Your Only Option,

Mark Sebastian

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