After a rapid spike in volatility and stock market death spiral following the historic U.S. Presidential Election, the market is seemingly coming to terms with a Trump Presidency. The outlook of a potential softening in the regulatory space under the new administration, seen as a win for businesses and investors, triggered a rally in which the Dow Jones Index saw several days of record highs, breaking the 19,000 level for the first-time ever. Meanwhile, the CBOE Volatility Index remained complacent, staying in a narrow range between 12 1/2 and 14 1/2 this week. Admittedly, no one truly knows how the new administration will govern, and as we approach inauguration day, volatility may present itself as a guest of honor.
“Tail Risk Wagging the Dog with Wall Street Fear Gauge” – Miles Johnson, Financial Times http://on.ft.com/2fTFiOn
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must! • DiscoverGold
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