10 Year VIX versus SPX

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

Vix_spx_long_term

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  . . .

~~~

Category: Contrary Indicators, Markets, Psychology, Technical Analysis, Trading

Most U.S. Stocks Retreat, Led by Financials on Credit Concern

click for video

Fins_slide

Excerpt:

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.

Source:
Most U.S. Stocks Retreat, Led by Financials on Credit Concern
Eric Martin
Bloomberg, June 23 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZ3JNXU3j5vg

~~~

Category: Markets, Video

Post # 6,000

Category: Weblogs

Wall Street Roller Coaster

Category: Markets, Psychology

Harvard’s State of the Nation’s Housing 2008

Category: Data Analysis, Real Estate

Chart of the Day: VIX versus SPX

Category: Contrary Indicators, Markets, Psychology, Technical Analysis

Did Bank of America Write the Housing Bailout Bill?

Category: Credit, Politics, Real Estate

George Carlin (1937 – 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 . . .

GeorgeCarlin.com Home Page:

Other remembrances:

George Carlin, Splenetic Comedian, Dies at 71 (NYT)

Say
It Ain’t So: George Carlin Dies
(Village Voice)

George Carlin: American Radical (The Nation)

How
George Carlin Changed Comedy
(Time)

From our files: The
nonconforming George Carlin
(Christian Science Monitor)

The complete works of George Carlin

All_my_stuff_geroge_carlin_2

Read More

Category: Video

MFR’s Shapiro Sees Federal Reserve on Hold for Next Year

MFR’s Shapiro Sees Federal Reserve on Hold for Next Year:

Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc., talks about the outlook for U.S. economy, housing market and Federal Reserve monetary policy.

Click for Audio

00:00 U.S. equities; economy; housing market
10:12 Fed policy; liquidity; inflation expectations
16:15 U.S. spending on energy; U.S. auto industry 
Running time 19:14

>

Source:

MFR’s Shapiro Sees Federal Reserve on Hold for Next Year: Audio

Bloomberg, June 20 2008

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aYxEwrPaNgeI

Category: Economy, Video

Not-Quite-a Linkfest

Category: Economy, Financial Press, Technology