The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.
Twitter Trafficking Market Direction
Twitter is taking on a new role as a predictive analytics tool that market participants are relying on to potentially enhance their portfolios. The CBOE-SMA Large Cap Index (SMLC) Index is a useful tool for investors to obtain useful actionable information from Twitter postings to identify stocks that have positive, bullish sentiment.
The SMLC Index is a sentiment-based strategy benchmark index that measures short-term market momentum based on Social Market Analytics’ (SMA) social media metrics.
Percentage changes in stock price indexes from year-end 2014 through February 6, 2017: the SMLC Index was up 42%, the S&P 500 Index (SPX) was up 11%, and the MSCI Emerging Markets Index (MXEF) was down 3%.
For more information on the SMLC Index, visit http://www.cboe.com/SMLC.
VIX Fix: New Market Rally, Same VIX Yawn
Major indexes soared on Thursday and Friday in the wake of President Trump’s comments that a “phenomenal” tax-related announcement would be forthcoming. Major market indicators reached new all-time highs again this week, with the Dow and S&P 500 closing at 20,269 and 2,316, respectively on Friday. While the Trump Rally, driven by renewed investor confidence, continues to accelerate, the CBOE Volatility Index (VIX Index) remains in the 11-range, expanding the recent period of low volatility and placing more distance between its current level and its historical average of 20. As the market waits in anticipation, volatility remains uninterested.
“Where Has the Stock Market’s Volatility Gone?” – Steven M. Sears, Barron’s
“Why Stock Market Volatility Isn’t as Low as it Appears” – Joseph Ciolli, Bloomberg News
“Five Charts That Say All is Not Well in Markets” – Tracy Alloway and Isobel Finkel, Bloomberg
“Low VIX Masks Insurance Markup Options Traders are Paying” – Cecile Vannucci, Bloomberg