Thursday, October 13, 2011

Wonder-Rally in the Sentiment Gage

On the bottom you see our VIX_OSC and how the gage has taken off like a rocket crossing the zeroline and becoming overbought (following our last base case scenario).

We looked at similar instances and found 4.

Characteristics of the 4:
  • 1998 kicked of the final leg of the NEW ECONOMY rally
  • all other recent instances where short covering events that led to at least one more re-test



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