Tags: VIX | worry | long | position

VIX Closes at the Second Lowest Level in 7 Years

By    |   Tuesday, 27 May 2014 08:11 AM

The CBOE Volatility Index (VIX) closed at 11.36 last Friday, which is the lowest the index has closed at since March 11, 2013.

Prior to the extreme low in 2013, you would have to go all the way back to February of 2007 to find the last time the VIX closed below the 11 level.

While the VIX was originally designed to measure volatility, thus the name, it also serves as a fear gauge for the market. A high reading means that investors are worried, while a low reading means that investors aren't very worried.

Seeing the VIX at the same level it was at in 2007 before the bear market started later that year is definitely a concern.

Another interesting development in the sentiment indicators came from the Commitment of Traders report for the mini-S&P futures.

The commercial hedger group moved to a net long position last week, which is the first time since January 2013 that the group has been net long.

Remember that this group is hedging their other holdings, so when they are net short it means they are hedging their bullish holdings.

When the group moves to a net long position, it should mean that they aren't holding as many bullish bets or could even be in a net short position with their other holdings.

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The CBOE Volatility Index (VIX) closed at 11.36 last Friday, which is the lowest the index has closed at since March 11, 2013.
VIX, worry, long, position
220
2014-11-27
Tuesday, 27 May 2014 08:11 AM
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