The VIX is up 33% since we posted "A rare VIX pattern is appearing again ..." (VIX; VXX)" at the open on Monday and I was wondering how much farther it can run.
I'm getting no help from technical analysis (above all the moving averages) or tea leaves (currently drinking cold coffee). Since I was forced to read the chicken entrails "only on the sidewalk, around the corner" maybe it's time for a sentiment indicator.
Here's What's Trading:
CBOE Volatility Index (.VIX) is down .55 to 19.36 and Jul 25 calls on the volatility index are among today’s most actives. One player bought 20,000 at 20 cents each. 50,800 traded. The premium purchases are possibly short-term bets that market volatility will remain high over the next few days. VIX July options expire next Wednesday. Open interest in the contract is 205,553 and the second largest in VIX (behind Jul 30 calls). So today’s flow is possibly closing trades as well.