Interesting to observe the 3 very distinct stages of the market bubble cycle.
Yellow = "Stealth Phase" where all of the smart money accumulates while everyone else sits in fear of the previous bubble, crash, credit cycle, etc.
- Transition to Blue via "take off" clear change in character
Blue = "Awareness Phase" where all of the institutional investors...
This looks primed for a big move after topping and entering a solid downtrend back in August. Check out the other indicators and note the very thin volume profile for the move down.
They said you can't chart VIX.. Charting VIX isn't useful.. Well I charted VIX.. Along with SPY and M1, and well decide for yourself, but I think we can tell where the volatility is coming from. Maybe the long vol trade will become popular!
Just some lines that seem important..
Also I think the mass relocation of the affluent class is coming to an end as these were the first people to start moving. Add in dependency on Asia for inventory (70% total and 38% China) and all of the logistical issues of global supply chains and I think the music is starting to fade.
