VIX Conundrum – Buying Opportunity of a Lifetime?

Posted by on February 13, 2017 2:54 pm
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About two weeks ago VIX briefly spiked to just below $10. Last time we saw VIX below $10 was in February of 2007. At that time volatility has bottomed at $9.70. We all know what happened shortly thereafter.

Here is another interesting data point. COT reports show that commercial VIX long interest (smart money) is approaching record highs. Now at 11X net long.

Now, many bulls would argue that VIX is no longer a reliable indicator and that it shouldn’t be followed. In fact, VIX’s “this time is different” crowd is growing larger by the hour.

On the flip side, today’s VIX lows might represent just that. A buying opportunity of a lifetime – in volatility that is.