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May 21, 2012

VIX Reversal Points To Market Recovery

Canadian markets were closed today but the Dow snapped out of its doldrums with an impressive 135-point gain as it closed near its high of the day at 12,504.

Of particular significance, which bodes well for the balance of the week, the uptrend in the VIX (Volatility Index) suffered a technical setback today as John details in the chart below (the overbought U.S. Dollar Index also declined and will likely have to consolidate for a period of time after such a strong run recently).

2 Comments

  1. Sell in May and go away? Or will the last weeks be the best buying opportunities since 2008? Personally I ve read so much about this lately and I just dont know who are what to believe anymore………………….. See what happens I guess.

    Comment by alec — May 21, 2012 @ 4:57 pm

  2. In Chinese saying…. May (number 5) is poor, June ( number 6 ) is the bottom and July (number 7) will be the wake up time…. See if July in Chinese calendar will be the recovery month. May and June will still be desperate months. Get your cash ready for Buy in a couple of months time. GBB may be one of those stocks… same for SG…. dropped over 70% since putting back on board. Current price at 7 cents… SFF large lot changed hands … I am not sure if this is good or bad. In most cases, not good….. e.g. MTU… 1 million shares changed hands at 28 cents very recently… now 17.5 cents. Some other junior stocks…. dropped. Anyway, SFF should be a good junior stock for investment in a medium term… current 11 cents level is quite attractive…. Perhaps, buy some at 10 cents level.

    Comment by Theodore — May 21, 2012 @ 5:18 pm

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