A snapshot of important market indicators:
- The VIX has come down 4 points since last week. The VIX is an index which measures stock market volatility and is maintained by the CBOE. The VIX is currently at 26.01, down from over 30 last week.
- Stocks are surging. The DOW is up over 250 points this week.
- Oil prices are also rising. The ETF that tracks oil (USO) has risen from $39 to the $41 range this week.
- Gold is continuing to surge approaching the $1,100 mark. Experts see strong resistance at that number.
- The dollar is falling against the EURO, fast approaching the $1.50 number.
The bottom line? Stocks and gold will probably continue to rise as investors are putting faith in blue chips and hard metal. The VIX will probably hold between 25-35 for the next few months. Although higher than historical averages, much lower than during the height of the fiscal crisis.
The dollar will continue to sink until spring.
Much of the uncertainty in the markets and dollar valuation is due to the feeling that the U.S. economy may still be faltering with a recover that is clearly jobless. The U.S. jobs number is the best barometer of which way the world economy is heading in our opinion.
Last week, initial jobless claims fell to their lowest level since January .
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John Romano is the publisher and editor of Yes, But However!, a musician, a former political correspondent for BBC Radio London, and a serial web entrepreneur. Follow him on twitter: twitter.com/yesbuthowever or John Romano on Google+John Romano article archive.
