Lot’s of interesting divergences today.
Check out the VIX and Euro both moving down today, which diverges from recent history. The VIX is down over 11 percent today, which could be position squaring before options expiration. We suspect that many got long volatility around the Greek elections.
Nevertheless, interesting action in the U.S. equity market. Apple, our proxy for hedge fund risk appetite is soaring, and with the VIX flopping, makes us think a blast to the upside in the S&P could be in the works. Could be wrong and always with a stop.
(click here if charts are not observable)