Jun. 8 at 11:57 AM
Last Friday, VIX jumped 30%, reminding folks of Volmageddon day from February 5, 2018, on a similarly strong Nonfarm Payroll reporting day. While this data set regarding forward S&P 500 returns from a 30% VIX daily return day only goes back to 2016, we might also consider that this was when the first rate hike in the post GFC era began, alongside passive QT. Regardless, after a 20% daily return in the VIX, S&P 500 delivered a positive 1-month return every time outside of Covid 2020. So unless you’re betting on a pandemic, the data informs of opportunity to buy the dip.
$SPY $UVXY $QQQ $VIX $SVIX