VIX and market update

The VIX daily makes new highs already and counts an 11 and we are not in an inside day, which is negative as it shows we are again in a panic mode. Rumours about humongous Hedge Fund redemptions are filtering into this ANGST factor rising sharply. The BKX is as expected – weak today and volume higher. We are heading into another climax since the way the market builds up we, with a VIX 13 likely on Monday, could have another snap back next week as well.
Our bearish scenario is developing exactly like the 1929 low of the first wave down so far. Basically next week we could get the low but that could be extended by another week easily. Many people are looking for a double low but I think they might be stopped out before market turns. Real lows have very little doors and let only a few in to put it into a picture.

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~ by behindthematrix on October 16, 2008.

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