Yesterday, we showed a one year chart of the VIX versus SPX.
It was apparent to someone watching both of these squiggly lines that a big scary spike in the VIX is a very good entry for traders on the long side fort he most part.
Here is the same chart comparison, only this time, we go back a full decade instead of 12 months.
VIX versus SPX, 10 Years
chart via Fusion IQ, Bloomberg
This is one of those technical analysis pieces which many people either ignore or do not understand . . .
My response to Felix will be posted at 10:00 am . . .
click for video
U.S. stocks retreated, sending financial shares to their lowest level in five years, on a deteriorating outlook for bank earnings. Rising oil prices pushed crude producers higher, leaving the Standard & Poor’s 500 Index and Dow Jones Industrial Average little changed.
Merrill Lynch & Co., Morgan Stanley and Lehman Brothers Holdings Inc. helped lead the drop after Bank of America Corp. cut income estimates for brokerages and Goldman Sachs Group Inc. advised selling bank shares as credit losses linger into 2009. Oil’s second day of gains pushed down Home Depot Inc., General Motors Corp. and United Airlines parent UAL Corp., while sending energy shares to their first advance in four days. American International Group Inc., the largest insurer, tumbled to the lowest since 1997 on Barron’s recommendation to sell the shares.
Almost two stocks fell for each that rose on the New York Stock Exchange. The S&P 500 rose 0.07 point to 1,318. The Dow decreased 0.33, or less than 0.1 percent, to 11,842.36. The Nasdaq Composite Index slipped 20.35, or 0.9 percent, to 2,385.74.
Most U.S. Stocks Retreat, Led by Financials on Credit Concern
Bloomberg, June 23 2008
Seven Words You Can’t Say on Television
And the Supreme Court decision relating to the above: FEDERAL COMMUNICATIONS COMMISSION v. PACIFICA FOUNDATION, 438 U.S. 726, 98 S.Ct. 3026 (1978).
Other videos after the jump . . .
It Ain’t So: George Carlin Dies (Village Voice)
George Carlin: American Radical (The Nation)
From our files: The
nonconforming George Carlin (Christian Science Monitor)
The complete works of George Carlin
MFR’s Shapiro Sees Federal Reserve on Hold for Next Year:
MFR’s Shapiro Sees Federal Reserve on Hold for Next Year: Audio
Bloomberg, June 20 2008