Last week we told you to keep an eye on the VIX as it could be forecasting a period of volatility or a pullback and did it ever…
Last week served as a good reminder that stocks, and yes, even technology stocks can in fact go down. As often is the case after a prolonged advance, the drop can be sudden and sharp, and often times happens on no news.
This is what makes performance chasing difficult because you just don’t know when the sell-off will come.
For the week ahead, just like last week, let’s track the movement of interest rates and volatility. The 10-year Treasury yield spiked on Friday, even with the stock market sell-off, making it a difficult day for both stocks and bonds. So, lets see what happens to the 10-year Treasury yield this week. And for the VIX, does it start to calm down or does the move higher continue? If it continues to move higher, then this sell-off might not be over.
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The VIX Foreshadowed the Sell-Off
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