SubscribeVolatility Index: Has Fear Subsided or Just Seasonality
December 22, 2011
Levels of the CBOE Volatility Index (VIX) have been steadily creeping lower. Fear in our minds has certainly not subsided, despite the “Bazooka” introduced by Europe and the not so steady rise in equity prices. We haven’t seen these levels of VIX (i.e. Sub 21) since July of 2011. As a matter of fact, the recent pattern in the VIX is very similar to that of what developed between May of 2010 until April of 2011. During this time period the market moved higher by approximately 25-30% after shaking out all the extreme volatility. Read more
Employment Data Appears to be Getting Better!
December 22, 2011
Initial claims have come in now 3 straight weeks and 6 out of the last 7 weeks under 400k. This is remarkable considering the employment situation that we are currently facing. It is important to see that we are making a marked improvement as the trend (4-Week Moving Average) has dropped well below 400k and continues its downward slope. Read more
Oil Inventories: Where is the Oil?
December 21, 2011
Major demand or maybe just a lack of inventory was seen today in the Department of Energy’s Oil Inventory report. Major draw downs in inventory stocks were seen across the board.
Crude showed a drop of 10.57 Million barrels vs. expectations of a dip of only 2.125 Million barrels
Gasoline dropped by 412,000 barrels vs. the expectation of a build of 1.5 Million barrels
Distillates dropped by 2.353 Million barrels vs. expectations of build of 83,000 barrels Read more
China’s Economy Leaves Room for more Monetary Easing
December 20, 2011
There is greater speculation that the People’s Bank of China will begin easing monetary policy again. China has successfully tightened over the last few months by increasing interest rates thereby cutting down inflation measures. This success has put them in a good position to begin easing again which could stimulate their economy. Read more
Bank of America (BAC) Reaches Financial Crisis Levels
December 19, 2011
Bank of America is down by approximately 4.5% on the day and is trading below $5 for the first time since March of 2009. Bank of America shares have been under extreme pressure in the past year as the European debt crisis strengthens and the foreclosure market remains unresolved. Read more
Links
