5min chapter

The Compound and Friends cover image

This Is a Hitchcock Horror

The Compound and Friends

CHAPTER

What's Your Takeaway?

The average close since 1990 is 20. That's so I guess it's been so long that we've had a suppressed VIX. It was 11 for like two years. If you're an algo, you're running basically 100 day analyses on how the stock or the index that you're looking at has traded. Every algo pretty much has the VIX wired into it. The rule that we talked about in March still applies: You want to try to nibble away at things on the long side when we're breaking above 30.

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