AI
Tuesday, May 20, 2003 11:46:16 AM
Here's an interesting excerpt from 21st Century's morning briefing.
The Nasdaq looks to be in a very precarious spot, as
there was no fear exhibited yesterday in the face of a big down day.
Both the QQV and the VXN -- the implied volatility measurements on QQQ and Nasdaq 100 options -- barely blipped yesterday, even though the Nasdaq 100 sold off 3.6%. That's significant, as it shows complacency in the face of adverse price movement -- a hallmark of a bear market. This is direct evidence that the brutally destructive bear market sentiment patterns are still alive and well in this market.
This also means that all those market participants who are bullish on stocks are going to require further testing of their bullish stance.
The Nasdaq looks to be in a very precarious spot, as
there was no fear exhibited yesterday in the face of a big down day.
Both the QQV and the VXN -- the implied volatility measurements on QQQ and Nasdaq 100 options -- barely blipped yesterday, even though the Nasdaq 100 sold off 3.6%. That's significant, as it shows complacency in the face of adverse price movement -- a hallmark of a bear market. This is direct evidence that the brutally destructive bear market sentiment patterns are still alive and well in this market.
This also means that all those market participants who are bullish on stocks are going to require further testing of their bullish stance.
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