Baseline Analytics Blog

Market risk assessment tools and tactical investment opportunities driven by curated financial insight

Extremes Suggesting a Hedge is in Order

Two measures we follow to spot extremes in equities are flashing red, suggesting time to put on a hedge.

First, the VIX and Equity Put/Call Ratio are close to approaching extreme levels that in the past have presaged a decline in equities:

Vix

Secondly, the NYSE McClellan Oscillator is begining to shift to a negative moving average cross.  Note the dotted lines (green bullish red bearish) and the slower-to-confirm solid lines, below:

nymo

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