On the heels of the stock market euphoria after the French election, this remarkable indicator just plunged to its lowest level in 30 years!
From Jason Goepfert at SentimenTrader: The collapse in “fear” is a little ridiculous. The original VIX calculation, based on the largest 100 stocks in the S&P, sank to its 2nd-lowest reading in more than 30 years on Tuesday…
To find out which high-grade silver mining company billionaire Eric Sprott just purchased
a nearly 20% stake in and learn why he believes this is one of the most
exciting silver stories in the world – CLICK HERE OR BELOW:
While the lowest readings in history did not precede major declines in stocks, they also did not precede major rallies. Every time stocks managed to add to their gains in the shorter-term, those gains were ultimately given back over the medium-term.
The collapse in volatility on Monday continued on Tuesday, and it’s getting stretched to a remarkable degree. The VIX declined modestly, but the VXO cratered again (see chart below).
“The main thing about money, Bud, is that it makes you do things you don’t want to do.”
— Lou Mannheim, Wall Street
The VXO is the “original VIX”. In the mid-2000s the CBOE changed the calculation for the VIX, moving from the OEX (the largest 100 companies in the S&P 500) to the S&P 500 itself. They still calculate the “original VIX”, which goes by the VXO ticker. It just sank to 8.62, the 2nd-lowest reading in its 30-year history. Traders are betting that the largest stocks in the S&P aren’t going to move much more than about 0.5% per day for the next 30 days.
To continue reading about the rest of what SentimenTrader had to say about this and many other incredible market topics and statistics try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***KWN has released the powerful audio interview with Gerald Celente and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Legendary Short Seller Warns “We Are In Fantasyland” As Stocks Soar And Gold, Silver And The Mining Shares Are Smashed CLICK HERE.
© 2017 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.