We are watching an incredibly orderly sell off of stocks right now. ?
While last Wednesday we saw a huge reaction in the VIX, since then the market has been down somewhat aggressively, ?certainly on an intra-day basis. ?However, VIX has moved with a slow orderly basis, essentially not panicking. ?In addition, it keeps being sold at the end of the day.?
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Part of the reason for this is overnight risk has been somewhat low. ?The market seems to open flat then slowly move lower like a crecendo, not like a sudden sonic boom. ?In addition is seems the market keeps waiting, almost expecting a rally the next day.
The Trade:
Watch for the curve to flatten back up, its probably a sale then.