When the VXX was introduced, all the demand (buying) to hedge, drove prices and the VIX itself, to go much higher. Now the market maker has figured it out and won’t be caught by surprise demand.
But even with that, why isn’t this showing most market participants nervousness?
The October VIX futures are trading at a $6 premium. So perhaps the September SPX options are acting lazily, but there’s an decent amount of Fall Fear out there.
It’s because a majority of market participants are permabulls (like your good self), and yet again in the weeks and months ahead your complacency will cause you all huge losses.
Simple!
If permabulls listened to some news, you’d know 2nd dip has been here for months. But you don’t.
Oh well, more juice for my shorts when your panic sets in, a few weeks til that starts.
Relax there, Timmah Knight.
We still have some time before the next drop.
______
Not as much time as you seem to think. P3 is the swiftest of waves down. I’m no Tim Knight, just a realist who likes to make money on the short side.
Your mate Scotty Bleeeaaah needs to sort himself out, his sappy followers will lose their shirts.
Bless ya…
Also, before believing comments such as ‘everyone is scared shitless’, please look at this…
http://tickersense.typepad.com/ticker_sense/2010/08/august-16th-blogger-sentiment-poll.html
Bloggers? yur kidding me…
The VIX is drifting lower because the demand for premiums are lower. The people who were forced to buy puts in May do not need to buy puts right now.