The Volatility Index was up over 16% today, breaking above a triangle formation. I remarked last night that I would not even consider watching for a bottom until the Volatility Indexes (VIX, VXN) spiked near previous highs. That spike has now begun.
Keep in mind that this is a measure of fear in primarily “professional” traders. Extreme levels are often associated with turning points in the markets.
I have to say that I am very nervous about going in to tomorrow net short. With the President speaking on a stimulus package, the chance of a surprise rate cut by The Bearded One, volatility spiking, and an oversold market, we have all the recipes for a violent snapback/oversold rally. This could be a brutal reality for those who are unprepared.
Or, this breakout could mean that volatility will continue to increase, and could surpass previous highs.
Note to Yankees:
VIX’in is a play off the Southern slang “fixin’.”
Fixin’- to get ready to do something.
One note on the Prez… he’s just going to talk, then the Dems are going to present their package tomorrow… it’s weeks at least until we know that we’re getting $250 to heal our wounds.
Wow,
Across the Dow Jones Wire came the news that the Prez would release the economic stimulus package tomorrow. It even caused a short rally.
*DJ Bush To Outline Economic Stimulus Plan Friday
.
(MORE TO FOLLOW) Dow Jones Newswires
January 17, 2008 14:58 ET (19:58 GMT)
Wood,
Pete Tong = it’s all gone wrong
Tom-tit = shit
jog
how could you press a short bet down here?
I didn’t but fly did, and he’s been right, so I dunno.
That’s mainly why I’ve been adding shorts in pieces. We could easily go up 300 tomorrow. I didn’t add anything short today. I thought I was going to get burned yesterday, due to being late to the short party.
Just betting on the bounce so far has been tragic, but yeah, after numerous triple digit down days, were getting close.
what do your technical lines say about skf?
Whenever el Prezidente speaks, the market goes down. Thats a trend I wouldn’t bet against, but all good (& bad) things come to an end, eventually.
The further South you go, the fewer syllables you use.
Fi’in’ is how we say it in Luzanner. If we’re really in a hurry to do sum’n, or get a nagging woman off our backs, we say we’re “fi’in’ ta do it direclay.”
Danny, if you just change your switch to “bear market” you will see that rather than trying to catch knives, you will be throwing them.
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Wood — that chart looks remarkably like Gary’s from tonight’s update… hmmm is THIS why you are having so much success these days?
BTW — who the fluck is Bearonidus?
Jeez, I know imitation is the sincerest form of flattery and all, but mein gott….
Ah’m fixin’ to eat some b’iled peanuts wi’ some hot sauce.
Jake – I’m gettng there.
Bill, I’ll have to remember to tell the wife I’ll get to it dreclay. I haven’t heard that since I left S.C.
JakeG- I haven’t visited Gary’s blog in a month or so, and I don’t subscribe to his service. Time stamp on this post is 4:34 est. Also, Shorticus will strike your gnads with a jagged lightening bolt for even considering my success was found at the throne of some other fucker.
Boca- when I used to eat those nasty things we called them “buhlled” peanuts.
good post.
I sold my FXP and I also covered a QQQQ put I’ve had. Maybe it was too soon. But all it takes is a little surprise rate cut and the markets will race higher.
Yeah, for about ten minutes.
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Wood, you still haven’t told me who Bearonidus is.
Jake, I thought you were Bearonidus.
Are you kidding me?
Why would I knock off my own schtick?
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