The VIX pops so stocks drop. The stock market moves higher as the Federal Reserve (America's central bank) maintains its jackboots on the throat of volatility. Chairman Powell's foot must have slipped. Keeping the VIX low maintains an upward-moving stock market that rewards the wealthy class that own large stock portfolios. However, one-half of Americans do not own a single share of stock. The top 10% of richest Americans own 90% of the stocks. When Fed members leave public life, they are invited, and paid, to attend token luncheons sponsored by the Wall Street investment banks; the quid pro quo for maintaining dovish monetary conditions during their tenure at the Fed. Isn't crony capitalism sickening? It's enough to make you puke.
The Keystone Speculator's VIX 200-Day MA Indicator signals a short-term bull market if the VIX is below its 200-day MA and a ST bear market if the VIX is above the 2 hundo. The bulls were clearly in control until two days ago. VIX is at 30.75 above the 200-day moving average at 28.36 so the stock market drops. Stocks are in trouble as long as the VIX remains above the 200.
The Keybot the Quant trading algorithm flipped short last Thursday morning. Keybot is tracking VIX 28.49 as a key bull-bear line in the sand impacting current stock market direction. Note that the Keybot number and the 200 MA are converging.
The VIX 28.36-28.49 range is for all the marbles. Keystone retrieves a purple crayon from the Crayola box and draws a thick line across this range. Keystone likes purple. They tasted the best as a kid.
It's not rocket science. If VIX remains above 28.49, the bears continue winning and the stock market is toast going forward. If VIX falls below 28.36, the bulls win and the selling will stop and stocks will stabilize. The bulls are hoping that Everything's Gonna Work Out Right, but sometimes it does not. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.