As you know, I think we have entered the final phase of the bear market: panic or "the fifth wave." What I'm looking for to declare a bottom is that classic capitulation where volume surges, the VIX explodes (puts explode) and panic is everywhere. Clearly, we are not there yet. The VIX is "chilling out" around 50, where as it reached 90 last October. I want to see the VIX over 70 at least. No worries, no bottom.
Wednesday, March 04, 2009
VIX: "No Panic Yet"
As you know, I think we have entered the final phase of the bear market: panic or "the fifth wave." What I'm looking for to declare a bottom is that classic capitulation where volume surges, the VIX explodes (puts explode) and panic is everywhere. Clearly, we are not there yet. The VIX is "chilling out" around 50, where as it reached 90 last October. I want to see the VIX over 70 at least. No worries, no bottom.
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Fwiw, I'm taking profits on my SPY puts here to look for a new entry higher up. Today I seeing hints of a "mini-capitulation" in the financials so I thought it might be a good idea to lock in profits. I am not going long to try and play the bounce.
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