This market will turn when it wants to turn - or when it is time to turn. But the VIX and Put/Call ratios are in position that rallies have happened from in the past. Another way to look at it is that if the market does not rally here, then the system is in much worse shape than previous lows.
The VIX has never been this high going back to 1990.
The 21 day moving average of the total put/call ratio is above the level that started at rally over the past couple years.
The 21 day moving average of the equity put/call ratio is also at extremes and a rally should start if this metric means anything going forward.
Charts courtesy of Stockcharts.com
2 responses so far ↓
OK, I had to turn around and come back home, I think your right Andy, if we go down right now much further, well, thats a deep subject, I couldn’t resist, I had to buy GS, and V . Goldman I feel is at a steal, and Visa will report good earnings, most people are using their cards for almost everything right now, thats all the $ they have. OK, now I am gone for sure…Good luck!. Oh and Kurt I do feel your pain on the $loss of Put $. But if you maid $ when you sold it, never complain. there is always the next trade, remember, this is a historical event taking place, we all can write a book about where our hearts and minds have been for the past 60 days, and how it will “Impact” our lives possibly till the end of our lives.
Don’ t trade off the VIX.