Nothing Like 2011

• Posted by Robert Sinn
• on July 23rd, 2012

During the last couple of weeks much has been made about the comparison to July-August 2011. With this morning’s ugly action, more eurozone worries, and a large gap higher in the $VIX it seemed like we may indeed be headed for a similar episode to that which we experienced last summer. However, since the open we have seen nothing but declines in the $VIX while equities have found their footing after having successfully tested the all-important $SPX 1338 level. So far the current action in the VIX is nothing like last year:

Click to enlarge

VIX Summer 2011:

Last summer the VIX was well above 20 by the end of July with the shorter term moving averages rising quickly.

VIX Summer 2012:

Today’s large bodied black candle off the gap above the 50-day SMA is a sign that while market participants are concerned about Spain, they are far from panicked – this is definitely something to keep an eye on over the coming days.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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