How Does VIX Look At the Current Market

Dillon Gage - Flash Market Update

The CBOT Volatility index (VIX) is known as the world’s barometer to predict market volatility. This volatility index attempts to show volatility for the next 30 days. It is constructed using the implied volatilities of a wide range of S&P index options.

Right now the VIX index is down on the day almost 17 percent at 18.74. Friday’s close was in the 23 area, but as soon as the announcement was made by the FBI director over the weekend that there will be no criminal charges made against Hillary Clinton, the market seems to have taken a calm pill.

At the time of this report, the Dow is up a whopping 350 points and Gold is under pressure,
down 23 dollars.

Of course, this not an indication who WILL win the Presidential Election. What this number means in my opinion is that if Hillary wins, the odds of indicting a president-elect goes away. This is very important for market stability. Remember the equity market more than any market hates uncertainties.

Gold and silver investments of late have been fueled by uncertainties.

To summarize, as I indicated in this morning’s comment, if there are ANY surprises in the next 36 hours, both the equity market and our gold and silver market will react accordingly.

So, don’t get too comfortable and loosen your seatbelt, just in case there’s a collision.

Have a wonderful rest of your day.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.