Via Dana Lyons’ Tumblr,
Despite the S&P 500’s jump to new all-time highs, trading in the short-term volatility market is signaling elevated levels of fear.
We mentioned yesterday that some strange developments were afoot in the stock market lately. Well, the strangeness continued through yesterday’s market action. Today we look at unusual activity in the volatility market – specifically, in the S&P 500 Short-Term Volatility Index, a.k.a., the VXST. Similar to the VIX, the VXST measures volatility expectations over the next 9 days, versus the VIX’s duration of 1 month. And like the VIX, the VXST typically moves counter to the movement of the S&P 500 (SPX). That hasn’t been the case this week.
This post was published at Zero Hedge on Dec 2, 2017.