Tuesday, August 21, 2012

S&P, Nasdaq Volatility Indexes Hit 2006-2007 Lows ($VIX $VXN $SPY $QQQ), Perma-bulls All In!

Market perma-bulls and risk managers have pushed the S&P 500 and Nasdaq 100 to new bull market highs and the price of insuring these indexes in the option market to new lows. The S&P 500 and Nasdaq 100 volatility indexes (VIX and VXN) hit lows not seen since 2006 and 2007. And it's all being fueled by monetary policy (printing money and bailouts). So the stock market is now priced like a manipulated synthetic CDO in 2006/7. Good luck perma-bull longs!


$VIX (Volatility Index -S&P 500 Index) via StockCharts.com

$VXN (Volatility Index - Nasdaq 100) via StockCharts.com
($SPX compared at the top, not $NDX)

News:
ECB speculation weighs on gilts, BoE buybacks support (Reuters)
EURO GOVT-Spain, Italy yields fall on ECB bond-buying talk (Reuters)
China’s Swaps Climb As Central Bank Adds Funds At Higher Yield (Bloomberg)

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