The FED today said they were going keep rates the same and finish out QE2.
Part of trading is noticing when things are out of place. Anthony Crudele has been all over the VIX displacement, he wrote about it on March 17th. The market and the $VIX were both making lows. They “should” move in opposite directions especially at their extremes.
When markets act out of whack, eventually one market is “right”. In this particular case VIX was right as the S&P 500 futures rallied.
This is a post-mortem and are always easiest to see but this is another lesson in seeing how markets interact.
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