Excellent article. It is true that volatility can stay low for months but if you use the futures as predictive measures, it appears that volatility will be increasing shortly. I am long the June VXX $17 calls but may need to manage appropriately if the volatility stays at low levels for an extended period of time. I'm willing to wait it out for a bit longer and not panic just yet.
http://www.bloomberg.com/news/2012-03-16/cons...anged.html
The cost of living is on the rise in the US fueled mostly by gas prices. I don't see too much relief in that area from the Executive Branch or Congress for that matter. A bunch of committee hearings and "task forces" won't do a thing. I think the "evil speculators" who are deamonized by the government are laughing all the way to the bank. The market is pure speculation, a fact that few people either realize or fail to comprehend. It doesn't matter if you think you are buying the best company in the world according to their books (AAPL for example), they could be cooking them nine ways to Sunday (e.g. Enron).
We all specualte when we trade. I think volatility is going up...maybe I'm wrong, maybe I'm right. I'd like to think that VXX will produce some good returns for me.
