VIX Characteristics and Implications:
6 February 2018, Tuesday, 9.52am Singapore Time
(Click on Technical Chart above to Expand)
Attached is the technicals for the VIX Index, a measure of the fear index and is heavily influenced by puts options in the market. The 1st green circle is where markets sold off which then bore fruits in the greatest tech stocks rally worldwide, with the NASDAQ creating all time new highs. The 2nd green circle is where markets sold off sharply in a short time which then bore fruits in super rally of bank stocks worldwide, sending DJIA and S&P500 into all time highs. The 3rd green circle is where we are now, this time round it will bear fruits in commodity stocks, energy stocks, crude oil stocks, oil related O&G stocks, shipping stocks, shipbuilding stocks, and a great bull rally in Emerging Markets. Market crash of any bear market will never allow for time to brew slowly in VIX which allows for Walls of Worries and Fear to be set up. These spikes in fear are needed in bull markets to confirm bull markets, yet effective in throwing confusion smoke bombs into the herd who will sell everything on panic and fear. The markets are catching the currently high amount of margins out there, to take over their positions cheaply. Those who are shorting, on the other hand, do be sure you are not shorting strong stocks such as banks, because the punishment when this ends will be heavy.
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