The VIX is up approximately 100% since Dec 5. It’s not often you see the VIX double in under two weeks but the demand for protection has skyrocketed with energy, bank lending exposure tied to energy prices, Russia, and today’s Fed meeting making for the perfect storm.
If the Fed announcement today is in line with expectations, and should energy see a second day of rallying, it will likely set-off a short-term buying spree in equities. How short-term it will be is dependent on the many reasons why the VIX has doubled. At these levels, caution (meaning proper position size and fixed risk) is of upmost importance.