Traders Dump'n'Pump VIX, Buy Gold After Dismal Jobs Data - S&P Gives Up Gains Year-To-Date
The machines went wild when the dismal jobs data struck. The instant reaction was a complete crush of VIX (despite stocks tumbling, Gold surging, and bond yields plunging), but that rapidly turned around and now VIX is heading higher again... Gold is now up over 22% year-to-date as S&P futures indicate cash will open in the red for 2016.
VIX crushed out of the gate but the weakness dragged it back higher as traders rush for safe haven gold and bonds...
broadly speaking it is "risk-off" for now but VIX is being manhandled to remain positive into the open...
And that indicates S&P 500 will be in the red for 2016...
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I have traded TVIX and VXY in the past, although I have quit at this point. The ability to suppress volatility for so long is something I cannot understand. I do imagine, though, that volatility will eventually coil up before exploding in a vicious manner. No one can suppress it indefinitely.