Chart of the Day: VIX versus SPX

Monday, June 23, 2008 | 11:00 AM

I came into the office this morning, and my trading desk started our week by discussing the VIX. We put this chart together comparing the "fear indicator" with the S&P500.

As the chart below shows, the recent lows have been accompanied by very large spikes in fear, as indicated by VIX.

Last week, we had a pretty big sell off -- but the VIX stayed relatively modest. That implies that a firm bottom (heh) -- at least one that is tradable -- has yet to be made.

>

VIX versus SPX, 1 yearV_ix_spx
Chart via Fusion IQ, Bloomberg

>

If the VIX were a stock, I would be a buyer . . .

UPDATE: June 24, 2008 8:48am

John Hussman noted in his commentary yesterday, “No Capitulation” that:

“despite the recent weakness, there is a strange “orderliness” to recent market losses – as if investors are convinced that there is some invisible safety net that will keep stocks in a trading range and prevent any sustained price erosion. That complacency may become costly. Still, stocks are somewhat oversold from a very short-term perspective, so again, we can't rule out a fast, furious spike to clear that condition."

Well said . . .

 

>

UPDATE: June 23, 2008 11:48am

I posted this before seeing Felix Salmon's Market Mover post on the following on: Adventures in Technical Analysis, Jim Cramer Edition.

I will respond to this later this week . . .

>

~~~


Monday, June 23, 2008 | 11:00 AM | Permalink | Comments (43) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e55369dc3d8833

Listed below are links to weblogs that reference Chart of the Day: VIX versus SPX:

Comments

If it is able to be manipulated....it will.
That it did not spike on friday tells you something...

I'd buy here too...too bad I don't need anymore "shorts".....which is really what that is in disguise.

Ciao
MS

Posted by: michael schumacher | Jun 23, 2008 10:59:08 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner