This Is Capitulation
This is capitulation:
- “Whatever money you may need for the next five years, please take it out of the stock market right now, this week” - Popular financial guru Jim Cramer on the Today Show this morning.
- The S&P dropped more than 200 points - 17% - over the last 6 trading days at its low today. That’s a years worth of losses in 6 days.
- The Fear Index (VIX) spiked up over 58 - higher than at any point during the 2000-2002 bear market.
- 50% of the stocks traded on the NYSE (1644 out of 3294) are currently at 52 week lows - totally unheard of.
I put a good chunk of money to work today. You shoud think about doing the same.
More on this topic
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How to Trade the VIX: Using the "Fear Gauge" to Hedge Down Markets
(Money Morning, 5/10/12)
Understanding the VIX Indicator
(Investment U, 3/6/12)
The VIX Indicator: What this Contrarian Index is Telling Us Now
(Money Morning, 3/7/12)
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