December 13, 2023

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.