CBOE Volatility Index (.VIX) $21.31 -1.89%

| June 8, 2012 | 0 Comments More

Poor economic data in Europe, including slumping German exports and declining French business confidence, helped set the table for an increase in risk perceptions Friday morning. As EUR/USD lost about 1 percent and made a run back towards 1.24, VIX ticked to a morning high of 23.1. Yet, stock market averages held steady early and the S&P is now up 1.6 points. VIX is now down .35 to 21.37 and 7.5 percent off session highs amid light volumes in the options market. 2.7 million calls and 2.7 million puts so far, which is about 75 percent the daily average. With a light economic calendar until Wednesday’s Retail Sales numbers, volumes are likely to slow even further today ahead of the weekend. Indeed, the tone of trading is much different than just one week ago, when the S&P 500 suffered a 32.2 point loss on Jun 1. The S&P 500 has since recovered the entire loss and is on pace for its best weekly gain for 2012. VIX is on a five-day 20 percent losing streak on the week.

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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.