S&P Jumps Multiple Days As Volatility Halves

This is an abridged version of our Daily Report.

What a difference a week makes

The S&P 500 has jumped more than 1% on 3 out of the past 4 sessions. That buying thrust comes on the heels of a multi-month low during a bullish long-term trend.

Future shorter-term returns were skewed positive, a stark contrast to similar thrusts during bearish trends.

Volatility x 1/2

The original VIX index has plunged by half in recent days, after spiking well above 30. That is usually taken as a sign that the worst is over and the storm has passed.

Similar spikes-and-plunges, however, led to weak returns in stocks and an increase in volatility.

No breaks for bonds

The popular investment-grade corporate bond fund, LQD, has been able to stitch together only 4 positive sessions over the past month.

Good news for miners

The HUI Gold Bugs index was at a 52-week low three days ago, and has since jumped more than 3% on two of the sessions since. That has happened 7 other times in the 23-year history of the index.

For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.

The post titled S&P Jumps Multiple Days As Volatility Halves was originally published as on SentimenTrader.com on 2018-02-15.

At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.

Follow us on Twitter for up to the minute analysis of market action.

Not ready to signup up for a free trial yet?

Signup for our Daily Lite email to receive highlights of our daily report, research and studies.

Follow us on Twitter:

Subscribe to our Youtube Channel:

RSS Feed

Subscribe to the Blog RSS feed