Media

MarketWatch.com


The stock market’s calm is over as Wall Street’s ‘fear gauge’ revs up

by Mark DeCambre

mw-ev832_roller_20160913134331_zh

So much for the those calm markets. Wall Street’s “fear gauge” is rearing higher as U.S. equities logged a second sharp selloff in the past three sessions as hand-wringing over the Federal Reserve’s monetary policy contributes to a return of volatility.

The CBOE Volatility Index VIX, +17.74% often used as a measure of fear in the market, is up more than 20% on Tuesday, implying that investors are increasing bets that stocks could suffer further near-term swings lower.  The VIX has hovered around 12 since mid-July. That level usually signals quiescence, while a reading of 20 or above indicates that investors are bracing for moves sharply lower.

Some make the case that the market has been spoiled by the episode of protracted quiet, while others view the surge in the VIX as necessary for stocks to move higher:

“I think this volatility is necessary. When the market gets too complacent, you need to have a little scare to get it to recycle,” said Asbury Research’s chief market strategist, John Kosar.

Read the rest of this article on MarketWatch.com.

Asbury Research subscribers can access the reports and accompanying charts that were used as a source for this article by logging into the Research Center.

Request a Free Trial of Our Premium Research

Why Our Subscribers Choose Asbury:

“I joined the Asbury Research “fan club” in the spring of 2016.  I run an RIA that is very much a retail client facing practice.  I take pride in building and running my strategies in-house.  For years I have struggled with garnering actionable trades from some very good research, just so esoteric that I could not put it to us — that is, until I met John Kosar and Asbury at a NAAIM (National Association of Active Investment Managers) conference a few years ago.  I can’t begin to tell you what a game changer his research has made in my models and my practice.  If you want concise, technically driven, actionable research – spend the money and hire John and crew for your team like I did.  Not to mention the access and time and attention he has given me in these few short months as a client.  Keep up the great work Asbury, I am extremely happy with the investment I have made in you.”

Principle, Registered Investment Advisor, Sioux Falls, SD