WTF Chart of the Day: VIX Smash

By Lawrence

You thought S&P going higher and higher like this is new?

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Think again.

This is what happened back in late 2002 to 2005. Every push higher in VIX is promptly answered by heavy selling of the VIX derivatives which in turn leading to arb activities that start the chain reaction forcing the S&P to go higher.

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Don’t under estimate a managed market.

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