Inside Day as the Focus Turns to Triple Witching Expiration Friday

The focus on Thursday turned quickly from follow through “FED” buying to position squaring ahead of tomorrow’s triple witching expiration.  New highs were rejected early producing more of an inside day with volatility traders also adjusting positions as many September positions expire throughout the trading day on Friday.  Volatility Indexes The volatility quickly evaporated on Wednesday after Bernanke’s statements as many were caught “off guard” by the FED Chair announcing no tapering yet.  Thursday’s trade initially was again in the direction of crushing volatility with volatility indexes sinking.  The VIX is again teetering just above the 13 level.  As a directional indicator, the VIX is based on the prices (real-time) of options on the SPX listed on the CBOE.  The future is designed to reflect traders’ consensus view of expected market volatility 30-days out.  As a gage of market complacency or market fear the VIX moves higher during periods of uncertainty a

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