In 2015 I posted an article, explaining why watching SKEW is more important than watching the VIX: Forget the VIX, watch the SKEW. In brief, SKEW index has a history of staying relatively high during bull markets and suddenly become low at the start of bear markets. This is what happened both at the 2000… Continue reading Very low SKEW
Tag: SKEW
SKEW is high again
Stocks have been pulling back a bit in recent weeks, but so far it seems to be the “short and shallow” variant as described in my most recent post. The Nasdaq has easily held above 5800 and is already pushing back towards its recent highs. This means the scenario for a further 5% surge before… Continue reading SKEW is high again
Forget the VIX, watch the SKEW
In the recent weeks I have been recommending to stand aside and stay cautious until the stock market offers a bit more clarity. And it is not as if we have missed much by doing so. Friday’s drop tells us that some caution is warranted at this point. Is it just a one day dip,… Continue reading Forget the VIX, watch the SKEW