It goes without saying that the market is vastly more volatile than it was. It seems almost comic that we were struggling around with a VIX at 11. Not that long ago, the market had a tiny little range every day, and it basically just went grinding up about 0.4% every single day, day after miserable day. It was awful, predictable, and horrendously dull.
Ummm, things are a little different now. The idea of a quadruple-point change in the Dow was the stuff of science fiction a month ago. Recently, it has become the new normal. Indeed, not just 1,000 point moves, but 2,300 point moves! Let me put it another way: the Dow fell in one day this week more than its entire value back in 1987 when I first started trading.
Let’s just say I don’t think you’re going to see the VIX at 11 again for a long, long, long time.