The rather ridiculous truncated graph shown below seeks to make a point. I am showing the kind of depths the VIX presently is in, and how infrequently it has “lived” there. In fact, for over six years, this is practically uncharted territory. Back in the days of the housing buble, the VIX found itself comfortably around the $11 to $12 level (and, on one occasion, even cracked beneath $10), but, let’s face it, this is a level of complacency virtually unknown to the markets………
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
VIX Pricks
Langorous placidity reigns o’er the land. The “bursts” of panic, marked with green tints, seem fairly regular, and if I may dare say so, we’re due.
Farewell to the Fire
If one graph captures the multi-year juggernaut of complacency that has swept the market, it is the VXX. With the $VIX cracking into the $11.xx zone earlier today (and, who knows, we might even see single digits this year!) one wonders if peace and contentment will be with us through the year 3157. This is a sight to behold:
When Good Fundamentals Don’t Matter
In a market that has been artificially-inflated for nearly six years and which is priced for perfection, companies are facing a situation in which, even with blowout earnings and revenues, they get curb-stomped. This is the shape of things to come for the market as a whole. Trees cannot grow to the sky. And Yellen is going to be left holding a gigantic bag of radioactive waste. Look no further than Ubiquiti Networks, which so far this morning has lost nearly a quarter of its market cap on the heels of a good report last night.
General Screwup
ARGH! Aie-eeeeeeeeee!!!!!!!!!!!!
OK, I present to you my Royal Screwup Of The Day: General Motors. As some of you know, there’s nothing quite so painful about being correct on a trade and yet losing money on it. This is one of those times for me.
I have been bearish on General Motors for a variety of reasons. They came out with their earnings this morning. The Street loved what they heard. They bid the stock up massively (relatively speaking; we’re talking about General Motors, after all). (more…)
