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CHART OF THE DAY: ANOTHER VIX HEAD FAKE?

26 January 2010 by Cullen Roche 2 Comments

As sentiment remains fragile and signs of a real recovery remain uncertain, volatility in global capital markets has remained high.  Over the course of the 65% rally in stocks we have seen a number of different scares, but none has materialized into a sustained downturn.   The last five 20% rallies in the VIX have all been followed by a quiet climb higher in the equity markets.  Is it safe to utter the four most dangerous words in investing – “it’s different this time”?

Cullen Roche

Cullen Roche

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Comments
  • Bertram

    It,s like hyperventilating.

    01/26/2010 at 8:44 AM
  • Glenn

    One difference for this time can be seen by looking at the VXX ETF… pull up a chart and look at the volume since end of December 2009. Clearly, several market participants were gearing up for a change in trend for the $VIX.

    01/27/2010 at 4:45 AM