October 12, 2009
Happy Columbus Day. Remember to feed the meters even though all public employees are enjoying a paid Holiday. More on that later. The market had a huge rebound week last week, and we are on the verge of totally forgetting that nasty, and ultimately forgettable to some, sell-off of the last two years. The SPY rallied from 102.49 to 107.26, a very large weekly move of 4.7%. The VIX was pummeled, starting the week at 28.68 and finishing 19% lower at 23.12. So we are to believe that not only is the market going straight up, and your investment in the market worth more, the insurance on the now higher value should be less. I thought the market was supposed to be rational?