VIX

The VIX is also known as the Volatility Index. This is normally associated with fear in the market place. The higher the VIX, the more fear and thus the higher the volatility.

Taking a look at the daily and weekly charts of the VIX shows some interesting trends.

After hitting a low of 9.39 in December of 2007, it has been steadily rising after breaking out of a bullish downward wedge.

Recently it has been consolidating and appears to be on the verge of breaking out higher again.




This can be seen on both the daily and weekly charts. While there is a chance that this breakout will fail, if it does break out higher, we can expect much higher levels of volatility in the stock market which in the case of today's market, I would expect much lower prices for such indexes as the S&P 500, NASDAQ, and the DJIA.

Weekly Charts of the DJIA and VIX

The DOW has been way up while the VIX has stayed low. A reversal looks imminent in the weekly charts.

A look at this year in charts

This year has come to an end. What does next year have in store? Let's take a look.

Silver and gold ended the year on a down note.

The Dollar and Bonds ended the year on an upward note.

Inflation is heating up.

The United States continues to print too much money and spend it on useless wars.

The Republicans and Democrats continue to keep a lock on power and corruption as the U.S. citizens are too stupid to figure out that they have been duped for years now. There are no Republicans or Democrats (except for Ron Paul who is a Real Republican). There are only Demopublicans. As long as the two party system remains in place expect more spending, war, entitlements, corruption and a decline in the standard of living of Americans.

A big thank you to Downsize DC and Ron Paul. These are two worthy organizations that are actually trying to do something about our absurd political and economical condition. Please visit them and support them and you can make a difference too.

A happy New Year to all.

Chart Review Below:

VIX and Volatility

The VIX is a measure of market volatility. Recently, the VIX broke out of a falling wedge to the upside and then fell back promptly. It looks to me like the VIX is ready to head higher and that could mean the stock market is ready to head lower. Although, with todays crazy manipulated markets, you just never know what is going to happen.

Is volatility about to rise?



Me thinks so....

Feeling Bullish On The Stock Market?

So the stock market continues to head higher. Take a look at this great chart of the VIX. Get ready for some volatility!