VIX discussion

[tnTrader]

Thanks Edwin.    That looks like minutes from the last meeting rather than the day of the next Fed meeting.  Not to say that is not the cause for the increase.  I expect those minutes could be quite revealing.  The next Fed meeting is on March 18th, I believe. 

[Edwin]

Thanks Edwin.    That looks like minutes from the last meeting rather than the day of the next Fed meeting.  Not to say that is not the cause for the increase.  I expect those minutes could be quite revealing.  The next Fed meeting is on March 18th, I believe. 

Yeah, sorry, it's the meeting minutes.  I think China inflation and PPI data is coming out on 2/17 as well.

http://www.tradingeconomics.com/china/calendar 

[Spread]

Can anyone give me directions about the expected SVXY move relative to a SPX move ? Thanks in advance

[Yowster]

7 minutes ago, Hielke said:

Can anyone give me directions about the expected SVXY move relative to a SPX move ? Thanks in advance

@HielkeGenerally, the SVXY (being an inverse short term VIX futures ETF) will rise when the overall market is rising.  So when SPX goes up, the SVXY typically does as well.  That being said, the SVXY does not go up specifically because SPX goes up - but rather because the VIX is typically dropping (or at least remaining flat) while the market is rising.  As long as the VIX futures are in contango (short term futures are cheaper than those 2 months out) then the SVXY will rise - rise at a greater pace when VIX is dropping and rise at lesser rate when VIX is flat.    There may be some scenarios where the VIX futures will rise (and SVXY drops) when the market is going up - but these are the exceptions and not the general rule.

[Spread]

17 hours ago, Yowster said:

@HielkeGenerally, the SVXY (being an inverse short term VIX futures ETF) will rise when the overall market is rising.  So when SPX goes up, the SVXY typically does as well.  That being said, the SVXY does not go up specifically because SPX goes up - but rather because the VIX is typically dropping (or at least remaining flat) while the market is rising.  As long as the VIX futures are in contango (short term futures are cheaper than those 2 months out) then the SVXY will rise - rise at a greater pace when VIX is dropping and rise at lesser rate when VIX is flat.    There may be some scenarios where the VIX futures will rise (and SVXY drops) when the market is going up - but these are the exceptions and not the general rule.

Thx Yowster, got it.