For this last post of this blog series, I will comment on the VIX. As seen below, if one looks casually at the VIX daily chart, there doesn’t seem to be much to be concerned about: Chart Courtesy of StockCharts.com However, I would like to make a couple of observations. First, as one can … Read more Peril In The Markets? Part V
The price action in the S&P500 since the March low at ~666 has struck me as being very “impulsive.” This is certainly a cause for concern. Also, there certainly has not been any significant “wall of worry” that one would expect given the fundamentals. The charts seen in this post are from Maurice Walker, http://thechartpatterntrader.com. First, a … Read more Peril In The Markets? Part IV
With the stock market (as seen in the S&P500) recently near the 1020 level, there is no debating that the rally since the early March lows of 666 has been a very strong one. Also, there have been very strong rallies in other markets as well (Nasdaq, Emerging Markets, Debt Markets, etc.) Below is the 1-Year Daily … Read more What Is The Stock Market “Telling” Us?
As seen in the Fortune story of June 15 titled “Economy in ‘early stages of repair’”: “The stock market’s rally serves as “broad validation” of the Obama administration’s financial rescue efforts, Treasury Secretary Tim Geithner said Monday.” While ostensibly this is correct, and commonly-held theory states that a stock market rally would precede an economic … Read more Is The Stock Market Rally a ‘Validation’?
One phrase that I have heard mentioned a few times is that the economic and market declines of 2008-early2009 created a “Opportunity of a Lifetime” to buy stocks, businesses, and other assets. I am not sure what reasoning is used to justify the “Opportunity of a Lifetime” phrase (and no reasoning has been provided). It would … Read more “Opportunity of a Lifetime”?
My view on the stock market rally (as seen by the S&P500, often denoted on this blog as SPX) that began on March 6 (at ~666) and peaked on Friday (at ~951) is that it is a bear market rally. And it certainly has been generous, given the fundamentals of the economy. I think it is … Read more Bear Market Rally