Whenever the VIX enters ‘The Retard Zone‘, it’s time to concern yourself with booking profits and getting the hell out of dodge.
This week’s pullback, although small and insignificant, was coupled with an uptick in the fear index, better known as the VIX.
As you can see with the 5 year chart below, the fear, for lack of a better word, may just being getting started.
Heading into May, all eyes are on trends and seasonality factors. People are morons and like to throw out phrases that rhyme to sound cool, such as “go away in May.” Since I’ve been away the whole damned time, it’s a natural recommendation for me to tell anyone “go away.”
The numbers aren’t all that wearisome, from an empirical standpoint.
We may very well be repeating 2012 or 2010, all entirely possible. But for the past three years, during the month of May, the SPY has gone higher.
Gold was an outstanding performer today, higher by 2.2%. Crude was flat and stocks underperformed. There is a palatable fear in the air. I can smell it and sense that it’s growing with each and every day. The summer months are nearing and people don’t want to get on the other side of this mountain, should trouble reemerge.
The ark floats.
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this selloff is washing out the people who chased and changing some of the leadership groups…other than that, it seems pretty benign so far, dare I say healthy.
I agree, benign, other than the world’s largest company crashing into the rocks.
shots fired @ GILD / AAPL / GOOGL / MSFT
aapl is the misdirection, it hasn’t been a true leadership growth stock for some time now and was barely participating in the recent rally. I agree it’s size will have some affect on the indices but it’s not the barometer it was 3 years ago. And using that logic, I see your aapl and raise you amzn. One stock does not a market make.
Q2 earnings estimates are now -10%. They were flat at the beginning of the year.
It’s infantile to call a company of their size misdirection
time will tell good dr….time will tell
The Japanese will be back buying anything Amurrican when they return from their holiday honoring their emperor who lost WW2. Stocks first, treasuries second.
I’d bet a pretty penny exodus flagged an OS signal 🙂
But it is May…..Fly. It’s simply May. Ok, if you need immediate cash, then yes, pay very close attention and proceed with alacrity.
Ppl usually need a little extra cash this time of year to put on their finest and dance around the May Pole and pay for a bacchanalian feast to celebrate surviving the Winter.
NIce Pattern for May’s
Since 2000 there hasn’t been 4 consecutive positive May’s. So I guess the ship sinks this year in May