September 19, 2011
Good morning. The market was strong every day last week, closing up 4.8% on the week at 121.52. So far in September, historically the weakest month for the market, we have seen the market down strong 3 days, up big one, down 2, and now up 5, all for a net loss of 70 cents in the SPY. Last week’s strong market caused the VIX to drop 19.7% to 30.98, the lowest close since August 3, 2011. Why the sudden optimism, or at least the semi-disappearance of fear in the market (as defined by the VIX Index)?
September 12, 2011
Good morning. Last week, in a holiday-shortened week, the market experienced heightened volatility on both an inter-day and intra-day basis and closed lower on the week. The SPY was down 1.93 to close at 115.92 (1.6%), and had a low of 114.38 on Tuesday and a high of 120.94 (5.7% spread) on Thursday, before selling off solidly on Friday. The weakness was due to several factors, mainly news from Europe suggesting (due to local election results) that the party of Angela Merkel (strong supporters of European unity and help for struggling countries) was losing support.