Smoking Securities

Half Baked High Finance

Ratios to Reason $SPX

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A weekly look at 5 indicators that depict the current market environment.
$BPSPX:$VIX = 97.31
$BXM:$SPX = 70.22
$CPMKTE:$CPMKTB = 39.67
$SPXA50R:$VIX = 87.58
$SPXHILO:$VIX = 15

The only glimmer of bullish hope my indicators offer is a 50% increase in the $SPXHILO:$VIX since my last analysis here. Otherwise, the bear market remains intact, and until the VIX can make a sustained move down, I suspect we will see increased market weakness. I’m eager to see how Barclays new volatility ETN’s will trade, especially in light of the markets lack of confidence in their risk management, reflected by the $3 stock price. New products offer new strategies, and though their entry seems late to the party, the potential for increased diversification is wonderful.
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Written by chucklesamadeus

January 25, 2009 at 10:53 am

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