Reflex actions

Futures up big this morning on a reflexive rebound rally, watch the VIX plummet– didn’t have  time for that one.   All these are part of the same bag of tricks, many people I know often do an overnight fade trade after big index moves.  Shorting the VIX at yesterday’s close or buying equities is essentially the same trade, which you promptly reverse this morning. And the more nimble ones will then proceed to go short when they see a pre-market 18 point  move in the SPY?  Markets are fast moving, such moves only make them faster! 

Someone asked about Japan and supply chain information– there are titbits trickling in- Qualcomm announced that they expected no disruptions from Japan, Toshiba and Hitachi announced the impacts of plant closure- I don’t think there is an organized place for such data, but if you find one please pass it along.  To fuel further speculation, what if  the Bank of Japan dumps a portion of  its nearly trillion dollar US Treasury portfolio to finance domestic reconstruction.

And the VIX opens down 10%.

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