How can anyone be afraid when the market is within a few percent of all time highs?
The VIX plunged Thursday, entering greed territory to conclude the shortened trading week. Regardless of what future hawkish policy action is on deck in 2022, the FED is still doing $80B/month in QE and interest rates are still at zero. In the short term that is still enough to calm fears and keep the bull trend alive. All signs point to a market melt up higher into year end.
- Spikes over 25 on the VIX have consistently been buy signals.
- Bleed outs under 18 on the VIX have been melt up areas, followed by short term rug pulls.