Russell 2000 and NASDAQ-100 Volatility in 2013

The Russell 2000 was a stellar performer in 2013 rising 37.00% and beating other US equity market indexes.  The US economy seems to be leading the world out of a protracted stall and the RUT, being comprised mostly of companies that focus on domestic sales, benefitted from this trend.

RUT - RVX

Since the Russell 2000 beat other market indexes, the CBOE Russell 2000 Volatility Index (RVX – 17.50) made an all-time low in 2013.

RVX Table

The NASDAQ-100 also beat the S&P 500 in 2013 rising 34.99%.  The result of this sustained bullish run was a low VXN as investors never decided to panic over the direction of tech and bio-tech stocks.  Not exiting or buying puts whenever there was any sign of weakness.

NDX - VXN

The average VXN closing price in 2013 was 15.14 which is the lowest average close in the last 10 years.  In addition VXN put in a 10 year low of 12.03 as every minor sell off in stocks was met with buying on weakness and further moves to the upside.

VXN Table