February 15, 2012, 11 am.
On my quote screen I have VXX and SPY close to each other because I have positions in each: VXX on the long side, SPY multiple bearish-leaning options.
At times today I've seen them moving up AT THE SAME TIME. That's nuts.
SPY's intraday high today is at multi-month levels. It hit 135.71 shortly after opening. The previous closest intraday high was 135.70 hit last July 7, and then all the back to May to find a higher intraday print.
And yet, these are very nervous levels. People are bidding up the insurance higher even as the market moves higher. The VIX has recently been in multi-week highs.
Is this an advance warning sign? Is everyone just biding their time, waiting for that piece of bad news to sell off their stock, or are they overpaying for insurance because of Greece?It's going to be an interesting next week or two in the markets.
Disclosure: I am long VXX.
Additional disclosure: Multiple SPY options that lean bearish.