As the VIX Turns

As the VIX Turns

  In the past we’ve talked about volatility and the different ways of measuring it. The VIX, or Wall Street’s “Fear Index,” is a popular measure because it tells us how much investors expect the stock market to swing over the coming month. It measures implied,...
Economic Limbo

Economic Limbo

  Every month the Institute for Supply Management releases two surveys that describe the state of the U.S. economy. One measures manufacturing activity and the other measures services. Average them together and you get what we call the ISM Composite Index, shown...
Gearbox

Gearbox

  At first glance, the stock market seems pretty straightforward. If plenty of stocks are hitting new highs, that’s bullish. If plenty are hitting new lows, that’s bearish. But what happens when a lot of stocks are making new highs and new lows at the same time?...
Murmurs From the Middlemen

Murmurs From the Middlemen

  This week’s indicator focuses on the AMEX Securities Broker/Dealer Index. If you’re not familiar with it, this index tracks companies in the securities brokerage business and related areas. It works like a barometer for activity inside the investment services...
The Rubberband Man

The Rubberband Man

  This week’s indicator is what we call an overbought and oversold indicator. The simplest way to think of it is like a rubber band. Pull it gently and nothing happens. Stretch it far enough and you start to feel the tension build. Keep pulling, and eventually...
Going Global

Going Global

  For this week’s indicator, we’re going global. U.S. stocks have been strong this year, but what about the rest of the world? What does the data say about the broader global market? To answer that, we can turn to a measure called Earnings Growth Breadth. This...