The CBOE Volatility Index (VIX), widely considered the measure for fear in the market, rose over 8 percent to near 22 on Thursday. Should investors be paying closer attention to the figures? Gordon Charlop, managing director of Rosenblatt Securities, and Alan Valdes, vice president of Kabrik Trading, shared their insights.
“What we’re seeing right now is a bit of a reversion,” Charlop told CNBC.
“We’re still stuck in a trend and a bit of retrenching here.”
Charlop said he doesn’t see “any significant sense of gloom and doom.”
“We also seem to be a little bit light on volume,” he noted.
“The institutions seem to be comfortable with their positions, so they’re backing off from trading; and [they're] trading around their current positions. Nobody really wants to give up what they’ve got or be too aggressive based on the risk parameters relative to emerging markets or foreign markets,” Charlop said.
In the meantime, Valdes said the markets have consistently been taking “two steps forward, one step back.”
“The news is going to dictate so much of what’s going to happen,” he said. “Today, it’s all about unemployment…More importantly, the four-week average ticked up 6,000. That’s basically what’s pushing the market down today.”
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No immediate information was available for Charlop or Valdes.