The U.S. economic numbers that came out on Friday were very strong with a jump of 217,000 jobs to bring the unemployment rate to a 6 year low. Most of the newly created jobs were in the transportation sector. The VIX which is the volatility index is sitting near its lower levels, which usually indicate an approaching possibility of a down-turn in the equity markets. As the saying goes “when the VIX is low it is time to go and when the VIX is high it is time to buy” but this is not always the case as the VIX did remain lower during the mid-90’s and stayed low for many years. We think this market looks like it will break its all-time highs to the upside as the economy is improving and Janet Yellen (The Federal Reserve Chairman) has no signs of raising interest rates until the middle of 2015, and she is not willing to take the punch bowl away from the party as the repercussion would not only have a negative effect on both the markets and the economic situation, but also scare off investors to sell in the markets.
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