Wall Street's 'fear gauge' breaks above 20 for first time since around Trump election
Last edited Mon Feb 5, 2018, 05:14 PM - Edit history (1)
Source: Marketwatch
A measure of Wall Street volatility on Monday rose sharply, hitting its highest level since around the time of President Donald Trump's stunning election victory November of 2016. The CBOE Volatility Index VIX, +23.86% was up 22% at 21.04, its loftiest level since Nov. 4, 2016, according to FactSet data. The VIX uses bullish and bearish option bets on the S&P 500 index SPX, -1.45% to reflect expected volatility over the coming 30 days, and it typically rises as stocks fall. A reading above 20 exceeds that of the volatility gauge's historic average, and may indicate a more bearish outlook for equities. The spike in the VIX on Monday comes as the S&P 500 index was hitting its nadir, falling more than 5% since a peak on Jan. 26, while the Dow Jones Industrial Average DJIA, -1.66% was off more than 460 points, or 1.8%, at 25,098. The Nasdaq Composite Index COMP, -0.98% was off 1.1% at 7,165, as technology shares also came under pressure.
Read more: https://www.marketwatch.com/story/wall-streets-fear-gauge-breaks-above-20-for-first-time-since-around-trump-election-2018-02-05?mod=bnbh
DOW drops 1,175 for the day. Worst day in stock market history! And it was on the conservative watch of the GOP & tRump.
Wellstone ruled
(34,661 posts)pull back level has now been surpassed. Next level is 7,followed by 10. This is the largest wealth loss since the Bush Crash of 2008.
Eat that Rethugs.
efhmc
(14,733 posts)take the credit from us.
mahatmakanejeeves
(57,664 posts)But in my case, the same amount of money buys more shares.
Don't worry. I'm not taking it personally.
Best wishes.
doc03
(35,389 posts)he expects the Dow to lose 20%.
Wellstone ruled
(34,661 posts)is the Day Trader Network. Morgan Stanley and Chase are not going to like this. Ton's of so called Day Traders about to be wiped out on Margin Calls this week if this holds.
IronLionZion
(45,563 posts)Or did they finally remember that the US has a consumer driven economy and wealthy people don't consume as much as everyone else as a percentage of their income?
Or they realized that last year was still driven mainly by Obama's policies and Trump has ended most of that.
Wellstone ruled
(34,661 posts)Seeing a pull back in purchases,and this is based on people whom I know and work Retail. All be it small at this time,March will tell the harsh story me thinks.
Turbineguy
(37,375 posts)I wonder if the market will reset to when Trump was elected.
Wednesdays
(17,450 posts)Last edited Mon Feb 5, 2018, 04:49 PM - Edit history (1)
Votality Index near 48%, and rising!
Edit: it hit 106% at around 3:15 p.m., holy shit!
bronxiteforever
(9,287 posts)Than forecasted. Many economic indicators are lagging indicators-behind the curve. As a contrarian the deficit is a bigger deal to me. The fact that we are needing the debt ceiling lifted earlier is a bad sign. The income tax reform was cobbled together quickly and poorly thought out. More con job and less economics.
The USA has poor international status which I believe will manifest through the global economy. We are due for a correction but I think it will be more severe. This could be the start of a real recession but I hope I am wrong.