VIX made a probable Master Cycle low on April 1 at 13.00. In the case of this chart, the price label “stuck” to an earlier low. This sometimes happens in StockCharts and other charting services.

If my observation is correct, we may finally see it rally above its prior high at 15.28 and give us a buy signal. Granted, the trendline is at 15.00, but a breakout does give additional confirmation.

Bloomberg just wrote a piece on the VIX and VIX ETFs that seems to point out the all the VIX trades are being unwound with losses. I don’t know whether this is deliberate misinformation, but we often see articles such as this at market tops and bottoms. The main contention that I get out of the article is that all the inflows in the VIX ETFs and ETNs came in since February 11.

That is not true, as you will recall from the ZeroHedge article that identifies the massive inflows only in the two weeks prior to their article being written on March 27.

You can see the rise in volume in the second half of March.

While the Bloomberg article has some elements of truth in it, I would say that, overall, it was misleading and poorly timed.

Regards,

Tony

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