And the nonstop rally continues, now up 110 handles in the S&P Futures (ES) since the Oct 9th low of 1640. The Delayed September NFP Jobs report came out this morning, and was absolutely horrible, which was good enough to ramp the market higher on the ‘Bad is Good’ meme. The most important number, like we always say, is the Labor Force Participation number, which is unchanged from last months 35-year low of 63.2. Gold popped up 24 to 1340/oz, and the 10Y dropped to 2.51%. ES is up 11.55 handles at 1749.75 with 1.83MM minis traded. Session high came in at 1754.50, and session low at 1736 even.
VIX was resilient all day, yet again, as the market rallied to new highs, all while the VIX held that 13 line we talked about. VIX closed at 13.33 (+1.29%), with protection being bid, with decent action as far out as 37.5 in the front month. VIX Futures closed relatively unchanged, after briefly dropping in the early morning. Premiums are cheap, and we have yet to have any type of major pullback in the market, and when we get one, VIX premiums will explode.
VIX TERM STRUCTURE (vixcentral.com)