Fear Returns as VIX Rises Daily

Monday, stocks closed unchanged in Asia but gained 0.7% in Europe. Markets were closed in the U.S.

Tuesday, stocks fell 1.0% in Asia, 0.9% in Europe, and 1.6% in the U.S. on 12B shares traded. The VIX moved up 19% to close at 22.79 and transition back from greed to fear. The 10-Year U.S. Treasury bond yield shot up 5% to close at 1.86. The S&P 500 closed below 4600. The NYSE ended below 17,000 and Apple ended below 170. Precious metals closed up 1%.

Wednesday, stocks fell 1.5% in Asia, closed up slightly in Europe, and dropped 0.8% in the U.S. on 12B shares traded. The VIX rose 5% to close at 23.85. The 10-Year U.S. Treasury bond yield fell 2% to close at 1.83. Precious metals climbed 2% while their miners ramped up 7%.

Thursday, stocks gained 1.8% in Asia and 0.5% in Europe but fell 0.9% in the U.S. on 12B shares traded. The VIX moved up 7% to close at 25.59. The Dow and S&P 500 closed below their respective 35,000 and 4500 levels. We have to wonder when historical measures of value will return to pricing of risk assets. Perhaps this will be the year when that happens. Here’s an article with a graph that shows uncanny correlation between central bank balance sheets and glamor stock prices.

Friday, stocks dropped 1.1% in Asia, 1.8% in Europe, and 1.6% in the U.S. on 15B shares traded. The heavier-than-usual volume may be attributed to options expiration. The VIX rose 13% to close at 28.85. The 10-Year U.S. Treasury bond yield fell 5% to close at 1.75. The NASDAQ and S&P 500 indices closed below 14,000 and 4400 respectively. Despite buybacks, IBM closed below its 130 benchmark. And finally, here’s another Fauci Flu article sure to be memory-holed by the Ministry of Truth.