I notice that Whole Foods is dropping after hours. This actually lines up with an analog I’ve been following for years now. My belief is that the market is oh-so-subtly beginning to ape its behavior before the financial crisis, with Whole Foods being just the latest example. I suspect much lower prices are in — umm – – “store”.
I’ll be the first to admit, if you asked me Tuesday, I’d say the odds of this were about zero.
As the VIX got pounded back into the sub-teens today, it occurred to me to compare the present activity to the period preceding the financial crisis. What I found was interesting. The chart below (click it for a much bigger version) shows 2003-2007 on the top and recent history on the bottom. You may notice a lot of similarities between the top and bottom, and I’ve drawn a red line at the top showing the equivalent of “right now”.