The SP500 Vix overlay is making me purchase put protection via the SPY. It is at the low end of its this rally's trading dynamic.
The vix could go lower, but it is unlikely given the macro economic and geopolitical concerns.
UPDATE - 04/16/11: Did some digging over the weekend, regarding the VIX pricing and why it declined so much. The linked article is a good explanation. Basically, the current set up maybe false due to the role over. Regardless of the role over, the level was still in the low-end range that merits caution for me.
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