A interesting Risk Off Comparison for longer term investors.

14 Jun

GOLD SPX NDX
A interesting comparison that signals when market are to be in a high risk environment as the comparison moves up or more specifically above its moving average generally markets at some point end up being lower then before it crossed above and started its uptrend.

14 Jun

Catatan

MOVE VIX
MOVE/VIX Another example of and indicator that suggest we are in a high risk environment. Every time its MA has touched it 1st standard deviation. Price has either declined back to that level as support or ended up below that point 8/9 times exempting one time due to market stability. In almost every scenario risk was extremely diminished by the time it had reached its lower standard deviation. All but unbeknownst to what a second standard deviation of this ration could mean for markets.

16 Jun

Catatan

Another comparison that is possibly on of my favorite indicators at this point in time for a RISK ON/RISK OFF measurement is the XLP/SPX other wise known as consumer staples being staples of the economy in times of risk the people are still relying on when stocks are selling off and generally are the last to sell off. The lines are the MACD moving averages crossing up or down. Generally moves up from below average and out of the red box have been risk off vice versa. When the moving averages are declining and pass through the green box then its more of a RISK ON environment meaning of which that purchasing equities that are volatile is more of a suitable environment.