Father of Five is Back : Market Top In S&P Imminent; Cross JPY Selling To Follow
One of my favorite signals is the realized volatility of S&P. Once this hits a low or new low, it usually means that the turn around in the market is coming. Why? I like to liken the drop in volatility, to the way the tide retreats, just before a tsunami. S&P realised vol recently did a new low in the past 5 years. Could be a big one on the turn. Should happen in the next 3 trading days.
Agreed. Simple physics : what go up must come down….
Hopefully it will not come down fast and furious but a mild technical correction.
At the rate it is going, the world has become a one dimensional place all led by central bankers. There is no room for dissent and by that logic, the exit will be narrrow.
Mind if i offer a different point of view on this?
Yes, it seems to be making tops in absolute value, however, if you plot the US indexes against another currency, then it doesn’t look all that great after all. US companies are worth less by virtue of their weaker currency.
As we all know, market can stay irrational for a very long time.