Today is the window dressing, VIX breaking down
The window dressing is coming today, it will show its face near the end of the day as i predict the fund will snap up all the outperforming names they did not have on the books during the beginning of quarter 2. What is interesting about this VIX breakdown is it has happened in the last few days as the market has traded basically sideways without much volume and or attention. The volume levels here really tell the story, remember VOLUME precedes price movement. I haven’t seen any decent volume in days, which has correlated to a muted market, this afternoon could be another story. The last hour of trading if we rally hard on larger than average volume the vix is going to be crushed hard contrary to what my previous posts have been stating. The breakdown has been larger than i expected but i am not worrying yet as Wednesday the fund are going to dump all the overbought crap they have on the books, which is a lot of crap. This should send the markets into a tailspin, putting the nail in the coffin of the “correction”. Hedge Accordingly.