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jonnievegajonnievega
How do you interpret this? 7/25/16
Silver SingularitySilver Singularity
It's an indicator of sentiment. 
When investors/speculators pay more (higher P/E) and they hedge less (lower vix) that is a sign of complacency. 
So when indicator is at an extreme like today, you can use it as a contrarian indicator because every buyer becomes a potential seller. 
So markets tops when there's a lot of buyers (and people who already bought) and very few sellers (and people who already sold) 7/26/16
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