Monday, February 03, 2014

Toppy

























The New York Stock Exchange Bullish Percent indicator flashed "Bear Confirmed" on January 27.  Last June it did the same thing, but the signal was false.  Last time I took the signal and got out of the market.  This time I'm wondering if this may be a 'normal' correction and I should wait it out.



















Last June the VIX moved up near 22, which is relatively low in terms of a fear reading.  Today it is reading close to 21, so the number is comparable.  Last June the VIX peaked and then fell back to 12 while the market rallied.  A peak in the VIX is a short-term buy signal.  I am watching carefully to see which it is this time.  That's why they pay me the big bucks.

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