ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The volatility index, the VIX, has closed below 11 for 5 straight days and 22 of the last 25. These stretches of extremely low volatility (I will now shorten it to ELV for convenience) include a 14-year low for the VIX. The interruption in this streak of ELV included an abrupt wake-up call where the … Read more
The volatility index, the VIX, has closed below 11 for 2 straight days, 3 of the last 6, and 6 of the last 13 days. Source: FreeStockCharts.com These low levels of the VIX seem dangerously low, and I have labelled them as such in my recent “Above the 40” posts. Yet, I have discovered the … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
This chart review pairs an ugly chart with a blooming one. Japan’s Nikkei stock market index made very little additional progress after the sharp and rapid bounce from the March lows marked a crescendo of panic over the Fukushima Daiichi nuclear catastrophe. On five separate days, the Nikkei survived tests of the closing lows from … Read more