WALL STREET’S FEAR GAUGE LOWEST SINCE NOVEMBER 2019 AHEAD OF THE FED, PPI BETTER THAN CONSENSUS
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Fear Evaporates
Please click here for a chart of CBOE Volatility Index (VIX).
Note the following:
- The chart shows that VIX has fallen to the lowest levels since November 2019. VIX is also known as Wall Street’s fear gauge.
- Fear has evaporated as market mechanics have taken over.
- When market mechanics drive the stock market higher, VIX hitting a low is inline with pre-pandemic historical patterns.
- From historical patterns, when fear completely evaporates, often some event comes along that causes the stock market to drop.
December 13, 2023