Blog Archives

Volatility Sleeps, Risk Doesn’t

Higher stock prices (NYSEARCA:DIA) have kept a lid on stock market volatility.

The S&P 500 volatility index (ChicagoOptions:^VIX), also known as the “fear index,” has now fallen around 17% over the past month and is back below its 200-day moving average. Does the stock market’s general lack of fear mean that volatility has reached a permanently low plateau?

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How Long Will Stock Market Volatility Stay Subdued?

Reader poll: What’s among the most depressed asset classes in the world? If you answered “volatility” you’re right on! The problem for volatility bulls (NYSEARCA:VXX) is we haven’t had a sustained level of stock market volatility.  That hardly means a lack of opportunities to profit from short-term volatility exist. The opposite in fact is true.

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Psst…Volatility is Still Outperforming the S&P 500

One week after the VIX (ChicagoOptions:^VIX) spiked to 30, Wall Street’s Kool-Aid drunks are back to saying that stock market volatility is over. It’s done. And it’s never returning.

The Santa Claus rally in small cap stocks (NYSEARCA:IWM) and technology shares (NYSEARCA:XLK) smack dab in the middle of October,

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Is Swelling Volatility on Modest Declines Bullish?

It’s been three years since the last significant stock market decline. The 19% slide from April 2011 to October 2011 stoked fear, but still missed the official definition of 20% bear market.

This time around, it’s still too early to know whether the modest pullback in the S&P 500 (SNP:^GSPC) that began several months ago will morph into a much larger correction.

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Is Stock Market Volatility Increasing?

Is stock market volatility rising or falling?

For most of this year, stock market volatility has actually outperformed the stock market itself. But for whatever reason, it’s an unpopular narrative that’s been and continues to be ignored by the mainstream media.

The chart below illustrates the relationship between stocks and volatility in 2014. 

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