Volatility Selling Delivers Record High Before July Fourth

Yesterday (Tuesday) there was an unusual level of volatility selling from the cash open. Here are some excerpts from Tuesday’s posts…

Yesterday 9:50 a.m.- “Volatility is under selling pressure. There were clear signs of selling pressure last night that didn’t move price, but this morning it is. That provides some support for the averages.”

Yesterday 10:35 a.m.  “This isn’t just relative weakness in volatility, this is purposeful outright selling of volatility meant to support the market averages. Every major average (as of this writing) is currently in the red, Small Caps  -0.45%, yet VIX is down nearly 4%. Even Small caps volatility gauge is down -2.5%.” 

“The point of this unusually strong volatility crushing is to help the averages recover higher. You could say manipulation, false support, etc. That’s the game, and it’s working right now.”

Yesterday 11:17 a.m. “ …someone pulling strings and smashing volatility lower to help support the market, presumably before the July 4th holiday”

Yesterday 3:13 p.m. “VIX is down -6% and at a new session lows as volatility comes under selling pressure again this afternoon. The S&P 500 is up 0.05%, there’s no reason for VIX to be down 6% in a normal market, much less one as defensive as today.”

“someone doesn’t want the market down going in to the July 4th, Independence Day holiday on Thursday. That has been the theme in volatility since the cash open.”

And here is President Trump’s tweet this morning  just minutes ago at 10:12 a.m. ET…