Over the past six years or so, the VIX has been carving out an enormous saucer-shaped pattern. I’ve been dutifully tinting the price peaks (that is, the mini-panics) all along the way, and it forms a pretty interesting, if highly irregular, pattern.
What caught my eye on Friday was the surge to about 23 seems, for now, to have marked merely a “lower high” for the VIX in the year 2016. I am still holding out hope that we’ll make a break for the upper 20s before the year is over, but as for now, volatility is still, to borrow a word from Ben Bernanke, “contained.”
On a wholly different note, here’s a marvelous piece of music. There Will Be Blood fans out there might want to skip to 34:30 and enjoy the climax.