To: The Ox who wrote (19025 ) 4/17/2017 12:24:22 PM From: John Pitera 1 RecommendationRecommended By Hawkmoon
Read Replies (1) | Respond to of 33421 Hi Ox, an interesting observation on the VXV ..... Speaking of implied volatility, here is a note from Jim Carroll (Managing Partner, LongRun Capital Management) on the inverted volatility curve . Most investors are familiar with the VIX index that measures implied stock market volatility for the next thirty days. Not as many know VXV, which does the same for a longer (three-month) period. One way to gauge investor fear is to see where VIX is trading relative to VXV. A ratio north of one means that people are more worried about now versus later. Inverting the ratio shows that those spikes above 1 tend to line up well with bottoms in the stock market. Source: LongRun Capital Management Having crossed above 1 on Thursday, we might be at or near a short-term bottom . Or we could see a more pronounced rout before turning higher. The other thing to notice is that the first stab down is often followed by another before a sustained rally follows. Be careful out there. The Elliott wave Long term view of the 30 year bond...... Posted On: March 31, 2017 09:29 PMBottom Line: A Supercycle degree double zigzag from the September 1981 major low appears to have completed with a Cycle degree ending diagonal wave c from the 104^16 low of June 200 7. It's interesting to note, though, that there has been an important bottom associated with the nominal topping period of the displayed 77-month cycle, which actually seems to split in half and produce a half-cycle low instead of a top at its mid-point. That may be the case here, as well, with a wave (2) rally on tap from the March low. Below are two monthly charts of the yield index of the 30-year bond. With the drop to a new all-time low at 22.01 (2.201 %), both show a possible completed wave count for a lasting bottom from which an initial rally may be complete. Finally, at the bottom of the page is a monthly chart of the TLT ETF. Last year's July high also appears to be a major top as the completion of a Cycle degree ending diagonal wave c from the June 2007 low. -- Peter DeSario