Saturday, August 1, 2009

More on $VIX - VIX and SPX - Correlating lately!




One of the best blogs on $VIX, i.e., Bill Luby's blog, talked about how $VIX is not gamed by the big boys. If so, how would one explain the correlation between $SPX and $VIX lately? Apart from the recent correlation, I've also noticed $VIX been up when markets are up and $VIX been down when markets are down! These two are inveresely correlated normally - unless this is the new screwed up normal.

I am in the camp "$VIX is manipulated lately"

No comments: