timing right for news ?, page-2

Hey Mr Fin

It is definitely an exciting time to be making announcements.

With the Chicago Board VIX index less than 20 for the last 9 weeks, we are in a upward trend in the S&P!!!

You can see by the charts below, the top chart is the S&P 500 for the last 12 months, and below it the Chicago VIX Index for the same period.

The two charts have an inverse relationship.

When the VIX falls to 20 or less, the S&P shows significant increase and when the VIX rises above 25, the S&P falls, as it did between August and October 2011.

So at 18, it is sitting at a comfortable level for announcements.

There is a lot of excess liquidity in the global financial system at the minute, completely the opposite of what was there from August to December 2011.

Even a small pull back in the S&P of 5-8% would bring in new buyers who had missed the last 24% increase since October.

Cheers Nectar