Perhaps you think it's impossible to score another 1,000% gain off this "tech titan" stock. Think again. An unusual strategy lets you virtually "recreate" gains off the biggest companies you thought had come and gone. CLICK HERE to see how it works.
What to Make of the Rising “Fear Index”
by Robert Williams, Publisher
Monday, October 5, 2009
The Chicago Board of Options Exchange Volatility Index (^VIX), also referred to as the “Fear Index,” spiked by over 30% in last week’s trading.
The VIX tracks prices investors are willing to pay for options on the underlying stocks of the S&P 500, often to protect against drops in the market. The higher the demand for such instruments, the higher the prices go.
Thus, the principle idea is that rising premiums on options (puts and calls) can be directly associated with increasing anxiety levels among traders. (The benchmark for absolute panic is the 89.53 reading logged on October 24, 2008 – at the height of Wall Street’s meltdown.)
So given the recent surge in the VIX – from 22 to near 30 – should we be running for cover?
Absolutely not.
| Understanding the VIX Values | |
| <10 | Complacency |
| <25 | Normal |
| >25 | Fear |
| >40 | Panic |
Late September and early October is a historically rough-sledding time for stocks. Think of it as a collective exhale, as Wall Street institutions and traders alike reflect on the year’s price action. And ultimately decide how best to play the home-stretch run.
We’ve pushed stocks a long way off those infamous March 9 lows. Heck, the price-to-earnings ratio on the S&P 500 actually sits higher than it did before the crash.
But as long as companies beat analysts’ watered-down performance expectations in the coming earnings season, we’ll be fine. In fact, a favorable batch of earnings would likely set the stage for a year-ending Santa Claus rally.
Ahead of the tape,
Robert Williams
- Biotech Stocks: The Market’s Best Bargain Right Now…
- Why the Gold Rally Has Some Feeling Cheated
- Dow 10,000: Buy it, Or Sell it?
|
The Company Set to Dominate a $60 Billion-a-Year Market
$60 billion is spent on cancer treatment in the U.S. - each year. And one company is poised to receive the lion's share of it.
The medical director at the Alta Bates Comprehensive Cancer Center says, "...possibly a third of our cancer patient population will soon be undergoing this [company's] treatment."
Another doctor at the University of Texas MD Anderson Cancer Center says he intends to treat over 1,000 patients a year with this technology.
Here's how you can claim your stake in the company before this cash infusion sends shares soaring.
Comments
**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.Check out our selection of daily Investment Research:
 |
 |
In addition to once being a full-time trader of equities and equity derivatives, Robert Williams has also served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution.
Investment U RSS Feed