Fear is on vacation
Posted By Mike On Dec 28, 2009 @ 8:15 am In charts | No Comments
A low and choppy equity put:call ratio on a high and choppy market remind me of the second quarter of 2007, the Goldilocks era. The 5-day average CPCE is my favorite short-term fear gauge, since it is so mean-reverting and highly predictive of stock action on a month-to-month basis.
[1] 
Source: indexindicators.com
-
And here’s a 5-year shot of the VIX (the most popular fear gauge). Sure looks due for a spike:
[2] 
Source: Interactive Brokers
- [3]
- [4]
- [5]
- [6]
- [7]
- [8]
- [9]
- [10]
Article printed from The Sovereign Speculator: http://sovereignspeculator.com
URL to article: http://sovereignspeculator.com/2009/12/28/fear-is-on-vacation/
URLs in this post:
[1] Image: http://sovereignspeculator.com/wp-content/uploads/2009/12/09-12-24-put-call.gif
[2] Image: http://sovereignspeculator.com/wp-content/uploads/2009/12/09-12-24-vix.gif
[3] Image: http://digg.com/submit?phase=2&url=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28%2Ffear-
is-on-vacation%2F&title=Fear%20is%20on%20vacation
[4] Image: http://del.icio.us/post?url=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28%2Ffear-is-on-vacat
ion%2F&title=Fear%20is%20on%20vacation
[5] Image: http://www.facebook.com/sharer.php?u=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28%2Ffear-is
-on-vacation%2F&t=Fear%20is%20on%20vacation
[6] Image: http://www.mixx.com/submit?page_url=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28%2Ffear-is-
on-vacation%2F&title=Fear%20is%20on%20vacation
[7] Image: http://www.google.com/bookmarks/mark?op=edit&bkmk=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F
12%2F28%2Ffear-is-on-vacation%2F&title=Fear%20is%20on%20vacation
[8] Image: http://www.newsvine.com/_tools/seed&save?u=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28
%2Ffear-is-on-vacation%2F&h=Fear%20is%20on%20vacation
[9] Image: http://reddit.com/submit?url=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28%2Ffear-is-on-vaca
tion%2F&title=Fear%20is%20on%20vacation
[10] Image: http://technorati.com/faves?add=http%3A%2F%2Fsovereignspeculator.com%2F2009%2F12%2F28%2Ffear-is-on-v
acation%2F
Click here to print.