Much has been stated about the Vix’s explosive move but yet the market has barely budged. Apparently this has hardly ever happened in the history of the data. Bottom line: with the VIX at 21 prepare for the market to correct some more. This has been the strangest couple of weeks I have ever seen. There was a day where the Dow moved in a 3 handle range for hours on end. We are talking the Dow here that moves up and down in 100’s of points daily.
You can sense the unease and disbelief out there. We are in uncharted territory. Bond yields are imploding and he economy is falling apart but yet stocks are acting like everything is fine. The current downturn has wiped out weeks of index price gains. We may bounce soon but I think further downside is ahead. The VVIX chart looks like it it did in August which is straight up.
Additionally I got a frantic call from my friend schooled in the technical analysis of the Daniel Code. Its an arcane system that uses price and time codes from the Bible. Its not always right but it does creep me out to watch the precision with which his targets were hit. We closed on his numbers 3 days in a row almost to the tick. He contends that the price recognition and the death cycle time window has him very nervous that the top is in and that a very big decline is coming. We shall see. The market has been very frustrating for bears.
As an aside the news is getting more strange as time goes on. The Russians may leak the Hillary Clinton emails proving that she broke the law. Apparently they are frustrated with the pace of our legal investigation. Think about how absurd this is, just bizarre.If you enjoy the content at iBankCoin, please follow us on Twitter