Stock Market Volatility (VIX)A Analysis
Stock-Markets / Stock Market 2023 Dec 12, 2022 - 05:26 PM GMTThis stocks bear market has been far less volatile than previous bear markets where the often voiced wait for capitulation moment has just flat out failed to materialise i.e. a VIX spike to above 45, instead each new low has failed to even reach 40. Nor is the significance of any decline reflected in the VIX peaks. So whilst many inexperienced investors may cry crash and collapse in fear on every down day, however this stocks bear market has so far been highly orderly, technical even as though a machine intelligence is at work behind the scene milking the market of money like a cash cow. The VIX range of 35 to 20 is very orderly given MSM and blogosfear noise, too calm for my liking i.e. most of the swings have not been volatile enough to capitalise upon.
What this means is that all those waiting for that capitulation moment will likely continue waiting all the way to NEW ALL TIME HIGHS! This bear market is NOT acting like a bear market! The price action appears engineered so as to allow the dark pools of capital to stealthily accumulate at the hands of the weak hands, those who joined the investing craze in recent years, encouraged to take on leverage who are now being fleeced of all of their paper profits and more!
There is no sign that the capitulation moment that many are waiting for is going to happen, hence all those who BET on such an outcome will continue to LOSE money as their PUT options expire worthless.
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By Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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