Volatility as expressed by the VIX has been low for many months. The last time the VIX rose above 20 was last October. I get the feeling that this may be the calm before the storm. The latest VIX reading is 13.6 and between now and February I expect to see the VIX move up to around 20 or more. The first week in January may be giving us a hint as to what's coming up. Every week that goes by increases the odds for a surge in volatility. If volatility does surge, I don't know if it will result in the market moving up sharply or down sharply. From my own standpoint, I prefer peace of mind and watchful waiting as we prepare for stock market history.
Meanwhile, optimism remains unusually high. Investor's Intelligence lists bullish advisories at 61.6% -- a five year high, with bearish investors at a low 15.2% ... Log in or subscribe to continue reading.
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