I’m seeing an increasing amount of bearish sentiment here in the comment section as well as across the financial media. Which of course is no big surprise given that we are smack middle in the most negative leaning market phase of the year. However just because a door is open does not necessarily mean the bear is going to walk through it. Let’s not forget that equity indices just painted new record highs all seasonal bias to the contrary.
I noticed something on the VIX this morning which inspired me to dig a bit deeper. It started with the realization that the VIX has experienced a marked increase in realized volatility (yes RV in IV) over the course of this year, whilst at the same time managing to drop to new all time lows of 8.84. Wall of worry indeed, especially given that the E-Mini is already pushing into new virgin territory as I am typing this.
Here’s a little bonus post for you guys based on some of the ideas I was exploring earlier this morning. Basically in addition to the top 10 I would also like to know which are the bottom 10 performing S&P 500 symbols for this particular week. So I added a new inverted routine and run it. Worked just fine with the only problem being that I only got four matches based on this week and the additional requirement of at least 10 years of historical data. But that’s better than a kick in the shin, so here we go:
My last Friday turned out to be a bit more eventful than I would have cared for. I was driving my moto back from the gym and stopped at a large intersection, at least large for European standards. When the light turned green I was the first one to go and thus cautiously proceeded forward. It’s my habit to alway give it another second or two as I had seen many left turning cars rush ahead of oncoming traffic in the past.