"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 1 min UK Stocks Bounce Back From Worst Selloff In Years
  • 1 hour Geopolitical Uncertainty Weighs On Global Markets
  • 3 hours Gold May Still Be On Its Way Down
  • 5 hours Bionic Cells: The Future Of Solar Energy?
  • 21 hours The Biggest Winners Of Q2 Earnings Season
  • 2 days Experts Suggest A Gold Shortage May Be Looming
  • 3 days The World Is Drowning In $247 Trillion Debt
  • 3 days Tightening Immigration Policy Could Hurt The Tech Sector
  • 3 days The First Bitcoin ETF Might Be Just Months Away
  • 3 days U.S. Rent Costs Hit All-Time High
  • 3 days European Allies Plan To Continue Trade With Iran
  • 3 days Bitcoin Bounces Off Key Resistance Level
  • 4 days These 3 Industries Are Immune To The Trade War
  • 4 days Is This The Answer To The Looming U.S. Healthcare Crisis?
  • 4 days UK Regulators Hit Facebook With £500,000 Fine
  • 4 days Tesla’s U.S. Tax Credit Coming To An End
  • 4 days Ex-Goldman Banker Caught In A Billion Dollar Fraud Scandal
  • 4 days Investors React To Escalating Trade War Drama
  • 4 days The Three Horsemen Of The Bitcoin Apocalypse
  • 5 days 10 Countries Feeling The Heat As The Trade War Escalates
The Biggest Winners Of Q2 Earnings Season

The Biggest Winners Of Q2 Earnings Season

The second quarter of 2018…

The 5 Worst S&P 500 Performers Of The Year

The 5 Worst S&P 500 Performers Of The Year

There are several reasons why…

Marty Chenard

Marty Chenard

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he…

Contact Author

Charts and Commentary

I will keep it simple and to the point today, because I am on my honeymoon in Mexico.

Below is a long term view of the VIX, Volatility Index.

Last year, I observed that the VIX had been going through a concentric circle pattern with precision ... see chart below and remember that when the VIX moves up, the market moves down.

First the first time since 2003, the VIX broke below the circle in September which meant that the market perceived lower risk and that it would move higher. This was accomplished through huge M3 injections by the Fed as they tried to stimulate the economy so we could avoid a recession. (This VIX pattern precisely held support a total of 11 times until September.)

This took the VIX "out of balance" and balance is always re-established given enough time. If you look at the chart below, you will see that we are at the juncture of an important testing point where the market could face considerable downward pressure.

If the Fed does not significantly increase M3 in the next few days, market risks will rise substantially.

(Paid subscribers: Please see your updates for the total analysis and risk conditions relative to Institutional activity.)

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages. I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membershipinformation

 

Back to homepage

Leave a comment

Leave a comment