Cat House

[Porgie Tirebiter]

The VIX hit the low of 2016 this morning at 10.93. That means the "fear factor" is relatively non-existent. Now that scares me. It means the big guys are getting greedy and not buying hedges.

The problem lies in any kind of market downturn. The only protection for recent profits would be profit taking for the big guys, stop losses kicking in for the retail guys and the whole process can begin to feed on itself.

You got China dumping bonds, Italian banks teetering, terrorist crap going on... There's a lot of reasons the VIX should be higher. Actually, needs to be higher.