VIX gaps up on residual Bull in a China Shop fears and spends the whole day declining as traders realize the knee jerk for what it was. The brewing trade war is fundamental stuff for sure, but the market is the market, sentiment is sentiment, technicals are technicals and fundamentals are the other thing. It’s a whole ball of wax.
For instance, I shorted a wildly over valued medical equipment stock; a maker of a non-distinct, commoditized product (I made components for these things in my former life) today near its highs and the thing said “screw you, I’m going up some more”. It’s just the way the market goes on any given day or week.
So here is the VIX seeking its usual place on the mat once again and the SPX ‘top-test’ scenario lives another day.
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