• 698 days Will The ECB Continue To Hike Rates?
  • 698 days Forbes: Aramco Remains Largest Company In The Middle East
  • 700 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,100 days Could Crypto Overtake Traditional Investment?
  • 1,105 days Americans Still Quitting Jobs At Record Pace
  • 1,107 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,110 days Is The Dollar Too Strong?
  • 1,110 days Big Tech Disappoints Investors on Earnings Calls
  • 1,111 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,113 days China Is Quietly Trying To Distance Itself From Russia
  • 1,113 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,117 days Crypto Investors Won Big In 2021
  • 1,117 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,118 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,120 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,121 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,124 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,125 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,125 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,127 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

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