VIX volume record could be canary in coal mine

Volume of fear rising:be careful out there

Typically spikes in volume in the VIX futures occur during volatile trading when equities are under stress. The record that was broke was from the week of August 8-12 in 2011 when the VIX spiked to 48 setting a 15-month high. Perhaps rising VIX volume is an indicator in its own right.

While equity indexes have been resilient, rebounding from every downturn to remain positive for the year and is up for June despite two of the year’s worst days, there is a sense of fear out there that is undeniable regarding what will come next. And today the VIX jumped as the markets are taking a beating — S&P down 20, Dow down 138. My boss forwarded a story on how members of Congress traded off of inside information they received while meeting with cabinet officials.

See what I mean about faith in institutions. Not sure what this all means but the markets have an edge to them these days and it would pay to remain diligent.

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About the Author
Daniel P. Collins

Editor-in-Chief of Futures Magazine, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange. Dan joined Futures in 2001 and in 2005 he was promoted to Managing Editor, responsible for overseeing all the content that went into Futures and futuresmag.com. Dan’s incisive reporting and no-holds barred commentary places him among the most recognized national media figures covering futures, derivative trading and alternative investments.

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