Cash in money market funds are 100% of stock market capitalization. That is as unleveraged as you can be, and lots of money to invest, not speculate. Don't be caught up in the populist rant of politicians -- the masses lose money. Be an elite trader.
vix at 23 means no put buying or no fear of prices dropping. market valuations are at 2006 levels. p/e is 20 well if you want the fantasy market.
put/call ratio was above 1.0 for 7/7, 7/8, 7/9 and 7/10. Most people buy options -- so lots of fear. The low VIX represents a new regime.
Anyway, I was short before long now. Not tied to any long term position. I have reasons to be bearish too, but I think the forums need some balance in opinions.
All it took to get this rally going was: 1. A few trillion $USD 2. Socialization of financial sector 3. 10% unemployment (and rising) 4. Largest deficit.....EVER 5. A Fed Funds rate very near to zero 6. A couple of stimulus checks 7. FASB 157 relaxation 8. Uptick reinstatement on financials 9. Skyrocketing foreclosure rate 10. Quantitative easing 11. A weakining USD 12. Campaign of Confidence by Obama Administration 13. Warren Buffet growing ever-more cautious 14. GM bankruptcy 15. California bankruptcy 16. 40% fall in home values 17. Golman liquidity-provider-rebate-based earnings boost 18. Decreasing corporate revenues 19. The growing bearishness of Larry Kudlow (yes, it's true) 20. The death of Michael Jackson
Yes Price and Volume action has dictated some very encouraging action. But, can anyone point to why the Vix has <b>GAINED</b> today?
The CBOE Volatility Index (VIX) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.