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The VIX Curve Contributed to Today's Stock Rally
From the Buzz & Banter: While fears over equities have abated, Treasury investors remain ambivalent toward the events in Ukraine.
Michael Sedacca    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I wanted to highlight a comment from Friday afternoon on the Buzz & Banter [subscription required] written by Zebra Investment Advisors manager Fil Zucchi that the VIX (INDEXCBOE:VIX) curve had inverted and was displaying a significant amount of fear. It seemed that many active investors wanted to go home long as some form of protection in case World War III started over the weekend. The March VIX contract, which expires today, is down significantly (-1.58 points) in addition to the spot rate (-2.28 points), which is causing the curve to return to a more normal steepness. I've included the chart below comparing today to Friday.

http://image.minyanville.com/assets/buzzbanter/charts/original/031714/VIXcurve_1395073399.gif
Click to enlarge

I have no edge here, but this is certainly one of the reasons behind the equity rally today.

Treasuries remain quiet. This, at face value, would suggest that the jury is still out on the Ukraine situation. I thought it was interesting earlier that the curve had bear flattened after last week's broad rally from the three-year to the 30-year.

Twitter: @MichaelSedacca

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

More From Michael Sedacca
The VIX Curve Contributed to Today's Stock Rally
From the Buzz & Banter: While fears over equities have abated, Treasury investors remain ambivalent toward the events in Ukraine.
Michael Sedacca    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I wanted to highlight a comment from Friday afternoon on the Buzz & Banter [subscription required] written by Zebra Investment Advisors manager Fil Zucchi that the VIX (INDEXCBOE:VIX) curve had inverted and was displaying a significant amount of fear. It seemed that many active investors wanted to go home long as some form of protection in case World War III started over the weekend. The March VIX contract, which expires today, is down significantly (-1.58 points) in addition to the spot rate (-2.28 points), which is causing the curve to return to a more normal steepness. I've included the chart below comparing today to Friday.

http://image.minyanville.com/assets/buzzbanter/charts/original/031714/VIXcurve_1395073399.gif
Click to enlarge

I have no edge here, but this is certainly one of the reasons behind the equity rally today.

Treasuries remain quiet. This, at face value, would suggest that the jury is still out on the Ukraine situation. I thought it was interesting earlier that the curve had bear flattened after last week's broad rally from the three-year to the 30-year.

Twitter: @MichaelSedacca

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

More From Michael Sedacca
Daily Recap
The VIX Curve Contributed to Today's Stock Rally
From the Buzz & Banter: While fears over equities have abated, Treasury investors remain ambivalent toward the events in Ukraine.
Michael Sedacca    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I wanted to highlight a comment from Friday afternoon on the Buzz & Banter [subscription required] written by Zebra Investment Advisors manager Fil Zucchi that the VIX (INDEXCBOE:VIX) curve had inverted and was displaying a significant amount of fear. It seemed that many active investors wanted to go home long as some form of protection in case World War III started over the weekend. The March VIX contract, which expires today, is down significantly (-1.58 points) in addition to the spot rate (-2.28 points), which is causing the curve to return to a more normal steepness. I've included the chart below comparing today to Friday.

http://image.minyanville.com/assets/buzzbanter/charts/original/031714/VIXcurve_1395073399.gif
Click to enlarge

I have no edge here, but this is certainly one of the reasons behind the equity rally today.

Treasuries remain quiet. This, at face value, would suggest that the jury is still out on the Ukraine situation. I thought it was interesting earlier that the curve had bear flattened after last week's broad rally from the three-year to the 30-year.

Twitter: @MichaelSedacca

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

More From Michael Sedacca
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