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)?