The NASDAQ-100 followed the S&P 500’s lead this week and rose about three quarters of a percent. For the year the NDX has been the place to be with a 14% plus year which compares favorably to the S&P 500’s rise of 8.77%. The strong tech heavy index has resulted in low VXN for 2014, both on an absolute and relative to the S&P 500 basis, however, this past week VXN held up a little more than VIX dropping about 6% while VIX was down 9%. Expect VXN to remain a little higher for the next few weeks as we go through earnings season for the third quarter. VXN has a bit of a higher floor when some of the larger components have an earnings report on the horizon.
Finishing the week at 1146.92 down 1.44% for 2014, he Russell 2000 is the red headed step child of the broad based indexes this year. Despite the drop in RUT, RVX moved down as well with the drop in VIX having a little negative influence on RVX.
Earnings is also having a little effect on the VXN curve, note the angle between the spot index and October future. There is an upward bias that also tends to show up around earnings. The RVX curve on the other hand is pretty flat which makes me wonder if there is some catch up for RUT versus the other markets being priced in.