VIX Gives Clue on Monday to Stocks Big Election Day

Last night in my internet commentary, I was asked about why the SPX and VIX were not consistent on Monday. The listener noticed that the SPX was unchanged and the VIX had moved down. I responded that it was not inconsistent and that the correlation was not always 100% from moment to moment. I added that sometimes the VIX will act ahead of the market and give us a clue of what the market is going to do. Tuesday morning it looks like the market is not doing what some in the media said was happening on Monday...that the market was waiting for the outcome of the presidential electon on Tuesday. At 11:49 ET the DJIA and SPX are up over the 3%. The VIX on Monday did give us the clue that the market was ready to move higher on Tuesday. Maybe the market is just glad to have the election process done, regarless of the outcome? Oil is also moving higher, so energy and commodity related stocks are having a big day also..airline stocks are not. MA and V up big Tueday morning. Check out the big 6 to 17% gains on these stocks: JASO, AEM, FWLT, IPI, MA, V, GDX, MOS, MEE, BTU, AGU, BUCY, CLF, LDK FSLR, FMCN, NIHD, BIDU, SCHN, CNX, POT, ANR, X, MON, ZION.