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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (41539)	12/9/2012 11:04:03 PM
From: Mr. Aloha	1 Recommendation Read Replies (1) \| Respond to of 222604

That dip in gold and silver last week below 1700 and 33 is starting to look like a darn good buying opportunity now, as does the S&P dip to 1400 after that VIX ramp spooked a lot of people: Message 28585294 The VIX is not a good leading indicator as some think, and in fact can be a good contrary indicator as it seems to have been last week. This article points out that historical volatility actually "crashed" last week despite the rise in the VIX, which measures investors' expectation for future volatility: schaeffersresearch.com "Elsewhere, there was a crash this week, as SPX historical volatility (HV) plunged from 15.40 at last week's close to the current reading of 11.02 (see second pane in chart below). The good news for bulls is that roll-overs from relatively high HV levels have historically set the stage for bullish price action. Despite the plunge in historical volatility, the CBOE Market Volatility Index (VIX - 15.90) advanced slightly for the week, as expectations for future volatility rise as budget negotiations (if that is what you can call them) continue in Washington." "But so far in 2012, high expectations for a sharp spike in volatility have been flat-out wrong, and, if past is prologue, a breakout above resistance could be around the corner, with positive seasonality amid heavy short-covering potential (see chart below) on the side of the bulls."