Tag Archives: VIX Index

True, the markets are nervous, but there is virtually no sign that an unpleasant resolution to the Greek crisis presents any threat to financial markets or even the Eurozone economy. Here's why.

The current U.S. equity market has something for everyone. Whether you are bullish or bearish, there is no shortage of indicators or charts you can use to support your thesis. Let’s run through both the Bull and the Bear case here. In the spirit of Confirmation Bias, feel free to skip ahead to the part that best supports your current positioning.

A big short term move in both stocks and gold is probably fairly imminent as periods of extremely low volatility like we are currently experiencing are invariably followed by periods of very high volatility that are brought about by a trigger event of some sort. There will probably be an advance warning somewhere, in a corner of the markets that perhaps isn't widely watched...[so] keep a close eye on these 12 inter-market signals.

Current macro conditions indicate that we are in a sweet spot for equity returns...that global growth is continuing and there is little or no tail risk in the immediate future. It's time to get long equities...but I have this nagging feeling that these market conditions are too good to be true. If you look, there are a number of technical and fundamental clouds on the horizon.

There’s no fear anymore - anywhere - and I’m talking about the type of fear that overwhelms investors – and, in turn, the market. The surest indication of this can be found in the following chart.

With stocks declining in the last few weeks all the various sentiment surveys point to excessive bearishness/excessive fear. That's in spite of the fact that market based indicators such as the VIX Index are not showing very much fear at all. While this market is deeply oversold and due for a relief rally, these readings are suggestive that there is more downside before we see an intermediate term bottom. [Let me explain.] Words: 290