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Paranoid! VIX Total Open Interest Hits All-time High

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

Perhaps investors are just paranoid … or they are justly concerned about a possible burst in the equities markets.

Liquidity moves markets!

Follow the money. Find the profits! 

Total open interest on the VIX futures just reached an all-time high.

vixoint

Indeed, the S&P 500 index does seem to be correlated with near zero Fed Funds rate and $4.45 trillion in Fed asset purchases (QE). And The Fed is hinting on raising their target rate sometime soon.

spxbubble\

Then again, if you are a fan of technical analysis like The Hindenburg Omen, there doesn’t seem to be a problem (no flashing yellow or red dots like there were during the late 2007 crash).

hinduberg

You would have to be Iron Man not to be at least at little concerned that the stock market is in a bubble that can burst.

hith-hindenburg-e

Just look at Tesla’s EPS trend (red line).

teslaeps

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