The "Bull Market in Pessimism" (Hussman,VIX)
If you have not read John Hussman’s letter you should check it out..*VIX CHART after jump
|CBOE VOLATILITY INDEX|
This post is directed towards the believers in the Credit Suisse’s comment we are experiencing a “bull market in pessimism“. The CBOE volatility index is telling us things are calm, there is not much money moving the market around. This can and will change once the holiday season ends. The VIX is nearing a pivot point at the 21 level, below that the 15-18 level comes into play. In the past this level has coincided with large negative market moving events.
The market is lethargic, it is not at all overly bearish.