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A screen on the floor of the New York Stock Exchange. (AP Photo / Richard Drew)
After a calm spring and summer, with a vengeance in October. The CBOE Volatility Index or VIX has been published since the beginning of the month, which is the largest volatility in the world. As volatility spiked, the Dow fell nearly 2,000 points since the start of October.
Here's what the VIX looks like right now:
VIX Volatility IndexFinviz.com
While many traders and market participants have been caught off guard by the volatility spike, I specifically warned about it on October 2nd in a Forbes piece called "Why Another Market Volatility Surge Is Likely Ahead."
Here's what I wrote:
The U.S. stock market is climbing to record highs once again and volatility has fallen dramatically from its panic-induced levels to this year. Traders have become complacent as they passively ride the stock market higher and bet on lower volatility again. While it may be possible, it is more likely that other powerful volatility is surge is likely ahead.
I showed three indicators that warned of an upcoming volatility surge: the 10-year / 2-year Treasury spread (inverted and advanced three years, which leads the Volatility Index), the positioning of the commercial hedgers or "smart money" in the future VIX, and also the extremely low volatility of volatility. Even I am a little bit surprised by how quickly this scenario played out!
I am very much concerned with this type of action considering how overvalued the stock market has become. As I said:
Volatility spikes typically occur as the result of bearish stock market action instead of bullish action. ace I've explained in another Forbes report, the U.S. stock market is experiencing a dangerous bubble due to the extremely stimulative actions taken by the Fed. Since the Great Recession low in March 2009, the S & P 500 stock index has gained over 300%, taking it nearly 80% higher than its 2007 peak:
S & P 500 ChartRealInvestmentAdvice.com
Our Chief Investment Strategist Lance Roberts and I am watching the market's key technical levels to where it is heading next in the short-term. Here's our latest analysis. We believe that the current bull market is going to end badly, but we respect and follow the market's trend in the short-term.
We at Clarity Financial LLC, a registered investment advisory firm, specializes in preserving and growing wealthy wealth in times like these. If you are concerned about your future financial, click here to ask me a question and find out more.
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A screen on the floor of the New York Stock Exchange. (AP Photo / Richard Drew)
After a calm spring and summer, with a vengeance in October. The CBOE Volatility Index or VIX has been published since the beginning of the month, which is the largest volatility in the world. As volatility spiked, the Dow fell nearly 2,000 points since the start of October.
Here's what the VIX looks like right now:
VIX Volatility IndexFinviz.com
While many traders and market participants have been caught off guard by the volatility spike, I specifically warned about it on October 2nd in a Forbes piece called "Why Another Market Volatility Surge Is Likely Ahead."
Here's what I wrote:
The U.S. stock market is climbing to record highs once again and volatility has fallen dramatically from its panic-induced levels to this year. Traders have become complacent as they passively ride the stock market higher and bet on lower volatility again. While it may be possible, it is more likely that other powerful volatility is surge is likely ahead.
I showed three indicators that warned of an upcoming volatility surge: the 10-year / 2-year Treasury spread (inverted and advanced three years, which leads the Volatility Index), the positioning of the commercial hedgers or "smart money" in the future VIX, and also the extremely low volatility of volatility. Even I am a little bit surprised by how quickly this scenario played out!
I am very much concerned with this type of action considering how overvalued the stock market has become. As I said:
Volatility spikes typically occur as the result of bearish stock market action instead of bullish action. ace I've explained in another Forbes report, the U.S. stock market is experiencing a dangerous bubble due to the extremely stimulative actions taken by the Fed. Since the Great Recession low in March 2009, the S & P 500 stock index has gained over 300%, taking it nearly 80% higher than its 2007 peak:
S & P 500 ChartRealInvestmentAdvice.com
Our Chief Investment Strategist Lance Roberts and I am watching the market's key technical levels to where it is heading next in the short-term. Here's our latest analysis. We believe that the current bull market is going to end badly, but we respect and follow the market's trend in the short-term.
We at Clarity Financial LLC, a registered investment advisory firm, specializes in preserving and growing wealthy wealth in times like these. If you are concerned about your future financial, click here to ask me a question and find out more.
