Wednesday, May 07, 2014

Hypothesis Testing--VIX Shows Bull Market Intact















I am still holding GOOGL, GOOG and PCLN, despite several technical sell signals.

My hypothesis is that with VIX remaining low, the bull market is intact.  This idea is causing me discomfort, because my stocks have been sinking, causing me that well-known feeling that I should sell.  It is somewhere around anxiety or fear for me as I wait for the VIX to prove me right.  As far as I can tell, the correlation between Google and S&P500 is .76.  It seems to be a little less at the moment.  Even so, I ask myself if I would buy Google at this price and I say 'yes.'  But holding it is still uncomfortable.