The “end of the world” folk are right. If we were to perpetually keep the VIX above trend, the world as you know it would end.
But it didn’t.
So we’re back below trend. And the immediate-term downside on the VIX this morning is at 17.72. It’s the first time we’ve seen a 17 in front of that in a while. We have seen Implied Vol come down big time – it got cut in half twice.
The Implied Vol Premium on SPY went from +109%, to +51%, to +25%.
What did you do to set up for that? I don’t particularly care what other people did, in fact, it gave us an opportunity.
Again, next time we’re at +109%, and in #Quad2, you know what to do.
Don’t forget, the Street is still short SPY. Fading your feelings. That's what it’s all about.