Last column I referred to Fear and Greed ruling traders emotions. The fear gauge that I mentioned was the Volatility Index (VIX).
The VIX gauge is still at historic highs, which is understandable as the VIX measures market expectations of near term volatility conveyed by stock index option prices. I postulated that if history repeats then we may well be coming close to a market low. More »
Emotion Rules and we all know which emotion is ruling in the current market environment. It appears that no matter what bailout package is thrown at the market it is not enough. The US government eventually passed the $700 billion TARP package in an endeavour to shore up the US battered mortgage markets, but this will take weeks to implement. TARP stands for the Troubled Asset Relief Program and its objective is to allow the troubled US financial corporations to offload the toxic mortgages from their balance sheets. More »
As we return to work and look at our investments in 2009 many traders and investors may be chaffing at the bit to forget the recent turmoil and focus on the future. This is certainly understandable however taking an objective look back at 2008 certainly does provide some interesting reading and may offer insight in the potential market action in 2009 and beyond. More »
A Contract For Difference (CFD) is an agreement to exchange the difference in value of a particular share between the time at which the contract is opened and the time at which it is closed. More »
While the instability of the global financial system suggested a weak end to the 2008 year, the seasonal odds certainly favoured a rally. In Australia during the last 24 years the Santa Claus rally failed to materialise twice; in 1990 and 1995.
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