Seems to me a lot are narrowly focused on a Stimulus, Housing Bailouts and how the VIX "feels too high". The first two will not bring a lasting rally to the market and the third gives me the creeps. Ok, so the VIX is roughly half of what it was when the DOW sat at these levels in November which suggests a certain level of complacency in the market. I don't view this as a bullish signal, but that's me personally. Chart the VIX and wrap it in Bollinger bands all you want. Step back a second and unless you can show me positive correlations to a falling VIX during Global Financial Meltdowns, Global Recessions and two or more sovereign nations defaulting, then I'm not a seller of volatility.
We are only one "surprise event" away from our markets tumbling again, in disorderly fashion. This surprise will come from across the pond since so many or focused on our own problems.
Not saying the VIX can't peel off another 15% in the short-term but to me this "feels risky" to be a seller of the VIX or naked puts in equities.
