June 11, 2009 June 11, 2009 By charlie In , , , , ,

SPXHILO:VIX ($ES_F $SPY $SPX)

SPXHILOVIX090611SPXHILO:VIX rose 24% to close at 193, the highest measure since September 2008. This signifies the percentage of stocks making new highs is increasing relative to volatility, a change that promotes the likelihood of successful investment.

So long as the uptrend remains intact, I will continue buying stocks and the weakness in Treasuries continues to confirm the bullish thesis. Increasing yields on risk-free long-term bonds implies market participants have opportunities elsewhere, and that the real danger is holding cash.

Still, there is no reason to rush into the market, the SPXHILO:VIX has much room for improvement.