Tuesday, September 22, 2009

Volatility Index Falls to 1-Yr. Low, Bloomberg Financial Conditions Index Reaches New 2-Yr. High

The CBOE Volatility Index (^VIX) closed at 23.08 today, the lowest level in more than a year, since September 5, 2009 (see chart above).

The Bloomberg U.S. Financial Conditions Index reached a new record high for 2009, and closed at the highest level (-.50) since August 2007, more than two years ago (see chart below).


At 9/22/2009 4:35 PM, Blogger BxCapricorn said...

Seems it did the same thing last year, just before it EXPLODED upward. Have you looked at the Baltic Dry Index lately? Similar pattern. This is where everyone gets complacent, and starts to trust the market will recover, then...

Now that Ken Fischer, Marc Faber and all of the other gurus have made the media rounds this past week, trying to get the last person back into the market (so they can get out and leave the bag-holding for Joe-Six-Pack), we'll see what's what.

At 9/24/2009 1:25 PM, Blogger BxCapricorn said...

Hopefully you understood what the Dollar Carry Trade is, and what Bernanke's message was on Wednesday afternoon...no more free money to invest in the stock market, we need to strengthen the dollar. Watch the VIX now! Exciting to watch a money scam unwind, isn't it? I do love this blog, and your efforts and graphics are very interesting. The comments are also top notch. Good luck to those with the foresight to take profits during an over-bullish, government sponsored stock market rally.

At 9/25/2009 5:51 AM, Blogger Διώνυσος said...

Marc Faber for the record does state that there may be a short term rebound in the dollar because of deflationary pressures but is bearish on dollar long term with good reason

At 9/27/2009 9:52 PM, Blogger BxCapricorn said...

For the record, Marc Faber was saying this at DOW 9800, and it's under 9600 now, and looks like it will step its way downward.

Marc Faber is always wrong because he's not trying to tell you, he's trying to sell you.


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