VIX watchers are looking for the next catalyst which might send the "fear gauge" higher. Most agree it's low relative to history and that generally the VIX doesn't hang at such depths that long. For Peter Boockvar at The Lindsey Group, the key reading for the markets and the VIX this week is Friday's PCE inflation data. He sees prices "much sooner than the Fed is forecasting." A rising-inflation scenario would dent the narrative that the Fed will keep rates lower for the indefinite future and could "hugely influence markets and the VIX," says Boockvar. The VIX closed Friday at 11.36, the lowest finish since March 2013.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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