The VIX has hit our target of 20 (actually it only touched 20.05 today) and we are now ready to begin "Operation VIX Wave". There is an abundance of optimism. The troubles of last summer seem to have dissipated. New year money is flooding into the markets. The money managers are positioning themselves for this year's expected returns. What's the problem?
The waters are too calm. The soveriegn debt issues have not dissappeared and the system in Europe continues to be fragil. As the volatility continues to wane, any small ripple can turn into a tsunami. We will begin our accumulation of volatility trades tomorrow with small intial postions.
The time is now.
Check emails for the strategy outlay.
