Travel to Financial Success

The VIX-index is a measure of implied volatility in the S&P 500 and is often referred to as a fear index.  CDX.NA.IG is a credit default swap-index consisting of 125 North American investment grade companies and the S&P 500 is a stock index consisting of the 500 largest companies in USA. In [1], authors use ordinary least square (OLS) regression to study if VIX can be explained by CDS and S&P 500. and find that the VIX ,  CDX.NA.IG  (will be referred as CDX in this article for short) and  S&P 500  have a high correlation. Figure 1.   A mean-reverting pattern of inverse relationship of VIX and S&P 500 played out cleanly in 2022. VIX VIX  is measured as the weighted 30-day implied standard derivation of annual changes in S&P 500.  For example if the value of VIX is 20, then S&P 500 is expected to increase or decrease by 20% over the next year. [2]   This will be true in 68% of the cases, because stand...

The ratio of the SPX to the 10-year Treasury volatility (SPX:10y T volatility) demonstrates a pattern where down-spikes correspond to local minima in the S&P 500 (vertical blue dotted-lines). The chart below (click to enlarge) shows that the down-spike in the ratio has reached the up-sloping trend-line. This increases the chances of a bounce in the SPX. $SPX (11/01/2018) References SPX:10y T Vol

The ability of a stock to be above its 200-day moving average can be considered a fairly reliable indicator for positive future returns. A breadth indicator that measures the percentage of stocks above a specific moving average. Many indicators have been created on the concept of market breadth. For example, a good market breadth indicator is $SPXA200R which measures: The percentage of S&P 500 stocks above their 200-day moving averages  Figure 1 Interpretation of $SPXA200R $SPXA200R is a medium to long-term indicator.  In general, you can use it to: Buy - when it moves above 30% from below and  Sell - when it moves below 70% from above   Figure 2.  Major corrections have been marked by extended time below the 50% level of $SPXA200R (Source: @DKellerCMT ) More on 200-DMA In addition to look at $SPXA200R, 200-day moving average (DMA) can be also used in different ways.  For example, you can look at: [1] The direction of...

In [1], Mark Arbeter has shown a Put-Call Chart using $CPCE with 5-day Moving Average to smooth out the data: Put/Call Ratio The Put/Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market weakness or bet on a decline. Call options are used to hedge against market strength or bet on an advance. The Put/Call Ratio is above 1 when put volume exceeds call volume and below 1 when call volume exceeds put volume. Typically, this indicator is used to gauge market sentiment. Sentiment is deemed excessively bearish when the Put/Call Ratio is trading at relatively high levels, and excessively bullish when at relatively low levels. Chartists can apply moving averages and other indicators to smooth the data and derive signals. You can read StockCharts article for its interpretation. $CPCE Charts 5-Day MA Using similar concept except that we have inverted $CPCE, we have charted $ONE:$CPCE with the data on 10/19/20...

Frisco is #1 on Money Magazine's "Best Places to Live" List Celebrate at our Upcoming Town Hall Meeting on October 1 There's no place like home and, according to Money Magazine, the best place to live in America is Frisco, Texas! To make this year's list, Money looked for cities with good schools, strong economies, low crime, and a strong housing market. They also sought out diversity, noting the "economic and cultural benefits it gives a community". Here's one excerpt from Money's  online article  about its selection process: "While there’s a lot to love about Frisco, part of its appeal is the city’s relatively low cost of living compared with its higher incomes and booming job growth. A typical Frisco family could pay off a new home in less than half the time it would take a Bostonian one to do so." Click here to read Money's profile of Frisco . Villas   at   the   Lakes  on Legacy ...

We Are the World Lyrics There comes a time When we heed a certain call When the world must come together as one There are people dying Oh, and it's time to lend a hand to life The greatest gift of all We can't go on Pretending day-by-day That someone, somewhere soon make a change We're all a part of God's great big family And the truth, you know, love is all we need We are the world We are the children We are the ones who make a brighter day, so let's start giving There's a choice we're making We're saving our own lives It's true we'll make a better day, just you and me Oh, send them your heart So they know that someone cares And their lives will be stronger and free As God has shown us by turning stones to bread And so we all must lend a helping hand We are the world We are the children We are the ones who make a brighter day, so let...

Source: “ Retirees Want More Dogs and Gardens, Less Golf and Pickle Ball ,” John Burns Real Estate Consulting