|
Yesterday the VIX rallied above the platform that I had drawn in my previous article. See The Bear Signal is Given, first seen at FSU on June 2, 2006. In their June 23, 2006 report, Lowry’s Reports, Inc. says, “During the past 33 trading days, there have been 13 occasions that qualified as either 80% or 90% days - more than one every three days, and never more than two days in the same direction. This qualifies as the most volatile period of market activity in the last 55 years. Whether such extreme volatility is due to hedge funds, programmed trading, or panicky investors, the prudent course is usually to remain in defensive positions and to avoid getting caught up in the tempest. "...to keep your head when all about you are losing theirs". History shows that periods of high volatility are usually relatively brief, since it is difficult for anyone to profit from them for long. And, as relative normalcy eventually returns, the primary negative trend of the stock market should become more apparent again.” The VIX is simply telling us that volatility may be coming back in spades. Do I hear growling nearby?
The Practical Investor, LLC is a State Registered Investment Advisor CONTACT
INFORMATION
The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
