Has an era come to an end?

maxsteam

Two of the main volatility indices (EURO STOXX 50 Volatility and VIX) are at 12 month lows. They have both fallen to levels that have not been seen since pre-covid days. It looks like a lot of the furloughed workers who had filled their days playing the markets are now back at work and have other things to occupy themselves with.


 

HansOndabush

Calm before the storm?

Chickereeeee

Calm after the storm?

ratechaser

Chickereeeee said:

Calm after the storm?

And before the next one.

StevieJ

Time to sell then?

Chickereeeee

StevieJ said:

Time to sell then?

Or a time to buy? Or maybe hold?

coastline

April normally a good month and this year more of the same.

Dow Jones Utility Average Seasonal Chart | Equity Clock

FTSE 100 Index Seasonal Chart | Equity Clock

Investors have been piling in this year regardless of those playing a home.

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Sentiment is high

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The rally is broadly based. Most stocks above the moving averages.

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Rotated from Growth to Value then back to Growth in the last few weeks. Probably why the likes of SMT have rebounded ?

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VIX has fallen into relax mode but there'll be some kind of correction soon it always happens. Could well see a summer lull which isn't uncommon followed by the autumn rally.? I'm not expecting crash as we've just had one. Just blow a bit off the top.

$VIX | SharpChart | StockCharts.com

[Deleted User]

Yes, you’ve just about managed to point in all directions at once there.

MaxiRobriguez

Let's see what a real increase in inflation does to the VIX. 

maxsteam

The volatility indices don't indicate the direction of the market, just how fast they are moving. It could be a volatility squeeze which would normally be expected to end with a large swing in one direction at no obvious time or it could be a new phase where markets move by relatively small amounts each day. The difference is that a volatility squeeze will end with a breakout at an unexpected time simply because buyers and sellers are no longer matched whereas a new phase will last until some news or event (furloughing, trade war or settlement, etc.) causes a noticeable change in market conditions.

TheAble

You could be right