Thursday , 28 March 2024

Tag Archives: VIX

These 6 Factors Suggest Avoiding Equities in the Foreseeable Future (+2K Views)

The six factors discussed in this article suggest a near-term peak for equity markets, avoiding fresh exposure to equities at these levels and selling some of one's equity holdings. Long-term investors can still ignore the volatility and buy quality stocks, however, it would make more sense to buy the same stocks after the markets decline 10%-15% than buying it at current levels. [Let me explain more fully.] Words: 665

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Richard Russell: There's Something Eerie About What's Happening So I'm In Cash! Here's Why

So far, the decline in the market has been fairly orderly; no panic, no hysteria to get out - even the VIX has remained calm [but] I wonder how much longer the decline will continue to be orderly. Frankly, there's something eerie about what's happening and, to be honest, what's happening is almost beyond analysis. I have nothing to compare it with....I really have to go on my intuition and instinct at this point - and my instinct is to get in cash.

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Markets are Living in Fear and Pessimism but Time May Be On Our Side – Here's Why

Comparing the level of the Vix Index of implied equity volatility to the level of the 10-yr Treasury yield is a handy way of gauging how extreme market sentiment is. The Vix index is a good proxy for fear (because the implied volatility of options determines how expensive it is to purchase options in order to limit one's downside risk), and the 10-yr Treasury yield is a good proxy for the market's long-term outlook for growth and inflation. When you combine a high level of the Vix with a low level of the 10-yr, you have a market that is not only very fearful but also very pessimistic about the future. [IMO, however, we may well have time on our side. Here's what I mean by that.] Words: 730

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What Does Current Global Crisis Comparison with Those of '08 and '10 Mean for Stocks, Bonds, Currencies and Commodities?

How does the current behavior of the global financial markets compare with the two recent crises, namely the great financial crisis of 2008/2009 and the minor one in 2010 when the sovereign debt crisis in the eurozone developed? [I have analyzed 15 aspects of the markets and have concluded that over the next 2/3 months we should see, among other things, increased volatility, declining S&P 500 and MSCI World indices, a bottoming in the 10-year U.S. Treasuries yield, renewed U.S. dollar weakness, renewed strength in the price of gold and silver with silver outperforming that of gold. Take a look at the 19 charts below to see for yourself.] Words: 825

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How to Profit from Extreme Volatility

On a theoretical basis, everyone knows to buy when others are fearful, to be contrarian, to avoid panic. On a practical basis, [however,] hardly anyone has the discipline and courage to act. [Below I outline] three ways that the individual investor can profit from the current volatility. Words: 614 So says Jeff Miller (www.oldprof.typepad.com)  in edited excerpts from an article* which Lorimer Wilson, …

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Gold About to Correct and Stock Markets Rally – Here's Why

The past few weeks traders and investors have been completely spooked by the surge of negative news and collapsing stock prices and reading the volume on the GLD exchange traded fund chart gives us a good sense of what the masses are feeling emotionally - fear....Fear is the strongest force in the financial market for moving prices and there are a number of ways to [ascertain the extent of] fear in the market and the more they line up at the same time, the higher the probability of trend reversal in the near future. [Let's take a look at a few such indicators and what they are currently suggesting.] Words: 700

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Relax! World's Stock Markets in Panic Mode but Its Not the End of the World – Yet

The plunge in global markets this week qualifies as a genuine panic according to the VIX index of implied equity volatility divided by the yield on 10-year Treasuries which measures how pessimistic the market is, and how much actual deterioration in the fundamentals there has been... [So,] are we finally on the cusp of "the end of the world as we know it"? Words: 437

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With U.S. Facing Default Where Should You Put Your Money?

With the United States quickly approaching the deadline for raising the limit on its debt load, squeamish investors are thinking about how they can preserve their hard-earned money. [Let's discuss the alternatives: gold and silver, cash, currencies other than the USD and the VIX.] Words: 683

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Prechter: Technical Indicators Point Down from Here

In his April 2010 issue of the Elliott Wave Theorist Prechter predicted that these same eight indicators would switch from bullish to bearish by May 7th. Considering the events on May 6th and 7th he is once again sounding prophetic. This is extremely important as the media would have you believe that the events of May 6th were the result of a "fat finger". Words: 1154

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