etfmsolutions: VIX Returns to Normalcy....UP...1.13.14

Monday, January 13, 2014

VIX Returns to Normalcy....UP...1.13.14

I mentioned the odd behavior in the VIX last week...that all changed today with the VIX rising 10% and the markets plunging. As we head into options expiration this Friday we may expect volatility to persist catalyzed by uncertainty at what upcoming earnings reports may reveal.
The markets are always climbing a wall of worry.....except when unbridled exuberance prevails.

M3 is clearly in cash as the TrendX showed a piddling recovery into the close. The energy sector XLE really felt the pain today although the damage spread across all sectors....retail (XRT) was just plain dismal.

I'm expecting a bounce into Tuesday's open...whether it will hold is more than a little uncertain.

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