Tag Archives: S&P 500

Low VIX Points to a Correction

Many things changed after the financial crisis in every aspect of life. Old paradigms have been replaced by new ones,  compatible with the new reality. Along these lines, I think that VIX serves now as a contrarian indicator . Although the … Continue reading

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Is this Market Rally Running Out of Fuel?

It took about three and a half years for the S&P 500 index to recover what was lost in about 10 months in the collapse that started in April of 2008.  Now, just 8 points away from the April 19, 2008 … Continue reading

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SP500 Correlation with the Shanghai Stock Exchange Composite Index

The 30, 60 and 120 -day rolling correlations of the S&P 500 index with the Shanghai Stock Exchange composite index have been historically low and have ranged all over the place, from positive to negative. Other than during a very short period … Continue reading

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Markets Reward Risk Takers

The recent price action in S&P 500 index is another proof that markets reward risk taking and punish risk aversion. We all know this principle but few are able to actually use it to profit. Those who did not enter the market in early … Continue reading

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SPY Attempt to Break Above $140.92 Caused a Bearish Divergence

The bearish divergence in SPY was caused by an attempt to break above $140.92, the high of the first day of May of this year. This bearish divergence is also present in the S&P 500 index as I wrote yesterday. The … Continue reading

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Signs of a Short-Term Correction in Stocks After a Rally in Yields

The 10-year yield rose 4.5% yesterday to 1.63%. A gain of 23 basis points in two weeks is, in my opinion of course, an attempt to squeeze out those late longs in the bond market who panicked when the the 10-year … Continue reading

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There Are No Irrational Rallies – Just Bad Analysis

Each time the market tries to rally and either attempts to challenge previous highs or make new ones, this trash talk about irrational moves emerges and makes headlines. It is clear to those with some market sense that the source of such trash … Continue reading

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