While most coverage in the media is done on SPX and DJIA, ?the really interesting index over the last few weeks has actually been the RUT. ?Take a look at the upward momentum in that index. ?Also, take a look at how fast that movement has been. ?Its incredible. ?At the same time the RUT IV is going no where. ?take a look:
What is interesting is that this is the ANTI-yield trade. ?RUT pays almost no Dividend and is almost entirely domestic. ?If there is any indication in the market that the economy IS doing better its in the RUT.
?I would be looking to own RUT vol and short either SPX or NDX.