Smoking Securities

Half Baked High Finance

SPXHILO:VIX ($ES_F $SPY $SPX)

leave a comment »

SPXHILOVIX090611SPXHILO:VIX rose 24% to close at 193, the highest measure since September 2008. This signifies the percentage of stocks making new highs is increasing relative to volatility, a change that promotes the likelihood of successful investment.

So long as the uptrend remains intact, I will continue buying stocks and the weakness in Treasuries continues to confirm the bullish thesis. Increasing yields on risk-free long-term bonds implies market participants have opportunities elsewhere, and that the real danger is holding cash.

Still, there is no reason to rush into the market, the SPXHILO:VIX has much room for improvement.

Advertisements

Written by chucklesamadeus

June 11, 2009 at 3:34 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: