The last few weeks of action since Bernanke last spoke, is enough to turn everyone on their head. With exaggerated moves up and down by about 400 points on almost a daily basis, one must question why is the VIX still in the mid to high 40's one day and never going much below the mid to low 30's. When will the VIX return to below operating levels of 20. The truth is that until Europe gets back on track and provides a believable level of financial sustainability, one might expect the VIX to be on the high side for quite some time. This is a trader's delight for when the VIX is this high, it is predicting that 2 - 3% moves on the SPX. Of course, now that Bernanke made no mention of any QE-3, I believe this will give the impetus for the U.S. to get their own financial house in order and have the politicians stop acting like three years old fighting over a bucket in a sand box. As luck would have it, now that we are starting to get back on track, albeit, at a slower rate than anticipated by all, we have Mean Hurricane Irene, which may wallop the entire Northeast of the U.S. and cause up to 100 billion dollars in damage. Even mother nature has decided to give the U.S. a run for its money literary and figuratively.
Here's to a safe weekend to the more than 65 million threatened by the 200 mile Mammoth Hurricane moving up the coast. In the interim, thankfully I purchased a raft from Rite Aide and have two paddles from my crew days which I plan to use to make my way down to Wall Street. Though I am outsider, chances are no one is getting in on Monday but those on boats - maybe by Monday, I will be an insider again.
No comments:
Post a Comment