An Alternative For Measuring Market's Negative Sentiment: What We Found Is Scary
By Sebastien Buttet:
"OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks. The other are July, January, September, April, November, May, March, June, December, August, and February." - Mark Twain
With the real possibility of the U.S. (and the world economy) leaping into recession before year end - perhaps triggered by the collapse of the Euro currency and the European Union - investors are jittery and three bellwether indicators attest of this nervousness:
- VIX: a measure of volatility for the S&P 500 Index (SPY) traded above 30 since the beginning of August. Yesterday it closed at 33.38.
- iShares Barclays 20+ Year Treasury Bond ETF (TLT): Yield on long-dated Treasuries are at record lows, with TLT making a new high for the year at $114.93.
- SPDR Gold Trust ETF (GLD): Gold still trades near record high levels around $1,800, even though the metal corrected sharply adter the Swiss Franc lost