Sunday, March 25, 2007

A VIX Buy Signal?

Naturally, I defer to Bill Luby for the final word, but the recent VIX spike may be marking a decent IT entry point for stocks. Few signals are clean and immaculate, so a stutter-stepping shakeout may happen before it's all over. However, stocks have historically fared well after similar VIX bursts. If you toss in the much-discussed 9-to-1 day and the unusually bearish investor sentiment, it may all add up to the right mix for a tradable rally.

best

dk

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