"In a bear market, whatever can go wrong, usually does." Richard Russell (Just try reading the charts of the Averages at the end of this site!)
I'm watching the VIX, often known by amateurs as the "Fear Index." So far, I've been surprised by how reluctant the VIX has been to rise. This suggests that traders see little need to buy puts or to protect themselves against lower prices. Now the VIX is finally above 20, suggesting that traders are getting a bit nervous, but I still get that feeling of complacency -- complacency everywhere.
I'm thinking that this bear market could last a number of additional years. If this is true, we can expect weeks and even months of maddening flat or low volatility market action -- just to use up the days. These "dead" periods will get investors to thinking that there is no danger in this market -- which ... Log in or subscribe to continue reading.
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