Skip to main content

A market of Uncertainty

As we saw some of those pullbacks in the market on Monday, Dan Deming was on CNBC to give some perspective. As he points out, we have seen some premiums in back month VIX futures which are trading higher than the cash. Also since Monday's movement in the market was rather drastic, the vix has also moved in a drastic way up nearly 15 percent. Click below to hear the interview as well as some of Dan's quotes from an article CNBC's "Market Insider".
http://www.cnbc.com/id/15840232?play=1&video=1216990665
http://www.cnbc.com/id/32453083/site/14081545

Comments

Popular posts from this blog

Is the KCJ Foreshadowing a 2008 Repeat?

The CBOE Correlation Index (KCJ) is close to the lowest level we have seen since it was first listed in 2007. The KCJ measures the implied movement of the S&P 500 components options, compared to the implied movement of the S&P 500 index options. Simply put, the higher the number, the more likely all stocks are going to move together. Conversely, a low number will be characterized by sector rotation, and flat markets; one sector moves higher, another moves lower.  (Source: Access Hollywood) Correlation, for lack of a better term, is correlated with volatility. Not surprisingly, 30-day S&P 500 historical volatility is near the low level of 6.5%. Currently at 33.5, KCJ is sitting close to rock bottom, lower than where it was in 2007, (but not lower than where Lindsay Lohan was in 2007).  So far this year, the market has been able to grind higher, characterized by leadership in FANG(Facebook Apple/Amazon, Netflix, Google) and sector rotation. A...