Hazy, Crazy Days of October! Volatility of VIX

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Its the hazy, crazy days of October, thanks to Fed rate hikes and asset bubbles.

With the CBOE Volatility Index climbing so much so fast — more than twofold over six days to about 25 as of Thursday — a separate gauge tracking the cost of its options has barely had a chance to catch up. The CBOE VVIX Index is at its lowest level since April relative to the VIX and well below the two-year average ratio. That suggests that contracts on the gauge of stock swings are on the cheap side, given the VVIX’s 51 percent gain over the same six-day period.

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Well at least the Dow had a “Dead Cat Bounce” today.

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Meanwhile, Jerome Powell and The Fed are twistin’ the night away!

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