December 5, 2011
Good morning. It was a huge week for the market last week, with the SPY up 8.52 (7.3%) to close at 124.86. That number represents a gain of 2.3% over the last two weeks, and a decline of 1.4% from the close three weeks ago on 11/11. The VIX last week dropped a full 20% to 27.52, indicating strongly that the market perception of risk, at least in the short term, has dropped significantly. Why the sudden change in market attitude?