The VIX breakout and the large moves in gold today – Exclusive Interview
After reading Dana’s post on the VIX, I wanted to get him on the show to discuss further. There are many assumptions floating around about what the VIX spike means but as Dana points out we have never seen anything like this before. We also touch on the big $30 move in gold today and follow up on his outlook for high beta stocks.
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Good listen Cory: Here’s an interesting article on gold and why June will tell the story for the near future of the PMs. http://investinghaven.com/next-big-move/gold-june-2016-important-month-decade/
The hedging in options, which fed into the VIX-related instruments was likely do the “Fedspectations” about a June rate hike, the Brexit/Eurozone concerns, and geopolitical jitters. Also, traders are getting more savvy at using ETFs to hedge (which also intensifies the futures markets due to the underlying rebalancing happening within many of these ETFs).
I figured it had gotten overdone and shorted the VIX today with SVXY and that did well as the conventional markets rose into the close…..
It will be interesting to see where many markets wrap up tomorrow for their weekly closes and weekly candles.
It seems like some of the fear dissipated throughout the day as the rate hike fears are muted again, and now there are expectations that the Brexit vote will be delayed due to the shooting.
From most sources close to the story, they still feel the UK vote will happen as planned.
A question for “AL”
Why did you delete ..OOTB Jerry ?