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Wash the Scaly Parts Thoroughly – and Keep Your Eye on the VIX

Posted on July 19, 2019

Just a quick note to apprise you of some developments in the volatility sphere.

Last week, in Technicians Alert: Golden Failure on the Investing Horizon?, we informed you that we were seeing signs of increasing compression on the VIX.  We mentioned that such indications often presage a tumble in the markets, but that they also come in batches.  That is, as signs of compression increase, so, too, does the likelihood we’ll see an equity tumble shortly afterward.

We’re writing now to show you the following –

We got at least one more highly compressed day a week ago, and potentially another now on deck.

And does that mean anything?

No need for the smart-aleck snidery.

We continue to warn one and all that continued compression on the VIX chart bodes ill for the current rally.

Nothing is definitive.

Just may not be a propitious time to go all-in bullish.

And for those who require a quick tutorial in volatility compression, please see here.

Eschatologically yours,

Alan B. Harvard

 

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