Wall Street wants in again
Wall Street analysts have been trying to keep up with their stocks, and failing. Over the past 10 days, they've upgraded the price targets on an average of more than 75 stocks per day. As Troy showed in a premium note, this tends to lead to a jump in volatility. According to the Backtest Engine, there have been 4 times when the 10-day average of upgrades reached this high of a level, and two months later the VIX was higher by at least 23%, and much higher in three of the cases. The dates were 2011-01-14, 2014-01-15, 2018-01-08, and 2020-01-10. They were all in January when analysts were updating their new-year forecasts.
