I’ve earned myself a few hours reprieve of playing Valencia tour guide and may even be able to hit the gym to work off a few of those greasy restaurant food calories. But it seems you guys were in dire need of a comment cleaner, so here’s a quick USD update after yesterday’s big central bank triathlon.
Trading volume in the S&P 500 has finally been on the increase after what amounted to a pretty sleepy August. However as always when looking under the hood I am seeing a few disconnects that are worth noting. For one effective participation in the E-Mini as shown on our Zero indicator remains minimal, suggesting that the ratio of executed shares vs. the number of transactions may be high.
I noticed something on the VIX this morning which inspired me to dig a bit deeper. It started with the realization that the VIX has experienced a marked increase in realized volatility (yes RV in IV) over the course of this year, whilst at the same time managing to drop to new all time lows of 8.84. Wall of worry indeed, especially given that the E-Mini is already pushing into new virgin territory as I am typing this.
We all appreciate Kim Jong Un for his megalomaniacal disposition, his sporadic bouts of military brinksmanship, and especially his unique talent for randomly causing widespread fear and panic all across East Asia. What’s not to like? He’s big, he’s bad, and he’s got nuclear missiles with laser beams on them. But there is such a thing as professional courtesy among super villains, okay? So he’s got to start sending me a memo or something next time he launches another missile, as they keep messing with my weekend campaigns.