$VIX "Kiss of Death" Readings in Reach ~ The Risk Averse Alert

Saturday, September 03, 2011

$VIX "Kiss of Death" Readings in Reach

In an era when the movement of speculative capital remains the effective means by which monetary "policy" is conveyed transformations in the consensus of faith in this wildly unbridled arrangement have been well documented by changes in the Volatility Index over recent years.

$VIX 2007-2009

In the 2007-2009 period $VIX 30 coincidentally (or not) marked an absolute point where upon crossing, either higher (Sept 2008) of lower (July 2009), the market's trend subsequently was cemented.

Likewise, once $VIX 40 was crossed, the kiss of death: everything crushed. Something to keep an eye on over weeks ahead...


Seeing $VIX holding above 30 as prospective wave (2) of C completed on Wednesday is appreciating how well-poised is this moment for volatility's sudden increase in formation of wave (3) of C, whose five waves were detailed yesterday.

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