On April 9,positive forecast on VIX was published by:
* MarketWatch http://www.marketwatch.com
* I Know First system http://iknowfirst.com/Stock-forecast-May-13-2012
From April 9, till today VIX is up 20%
Stocks stood poised for a third straight day of gains after China's central bank announced that it is cutting its key lending rate by a quarter point.
The People's Bank of China said the move would take effect Friday and lower the rate to 6.31 percent. The PBC move comes as China looks to bolster its sagging economic growth and was not expected.
As a result, U.S. stock futures, which were slightly positive prior to the news breaking, indicated gains of at least 0.5 percent at the open.
Investors also saw some evidence that European policymakers would act to prop up Spain’s banking sector, while a key member of the Federal Reserve made the case for further monetary easing to protect the U.S. economy from the impact of the euro zone debt crisis.
Europe Markets turn Green.
Larry McMillan, president of options research firm McMillan Analysis Corp, in a report on Friday.
"We expect a powerful but short-lived rally should be coming soon. But at this point, barring some major shifts in our indicators, it may only be a rally in a larger down-trending market," McMillan said.
This remark is in a good agreement with
* Morgan Stanley and
*I Know First algorithmic system
Also predicted high possibility of market correction.
Hopes that European policymakers will act to soothe the continent’s financial crisis caused investors to pull money out of haven assets such as UK gilts and German Bunds, sending yields higher, and helped European stock markets to their biggest one-day gain since late November.
Market watchers are preparing for Thursday’s testimony by Ben Bernanke, the Federal Reserve chairman, for signs of a third round of quantitative easing.
J.J. Kinahan, chief derivatives strategist at TD Ameritrade, said: “We just don’t know how Europe is going to play out as the summer progresses, the Fed chairman may need to go to the well if Spain declines once more. This means he might choose to hold his ammunition in the near term.”
In last 115 years Dow Jones Industrial Average gained an average of 5.25% from the end of May through its highest close over the next three months.
It is very hard to argue with the statistics.
Gold futures climbed by more than $20 an ounce Wednesday, buoyed by news that U.S. productivity fell more sharply in the first quarter than originally estimated, as traders mulled the euro zone’s next move to stem the region’s crisis.
"If Bernanke gives some hint on a third round of quantitative easing, we'll be likely to see gold march towards $1,650 or higher," said Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong.
Asia markets broad gains came amid optimism that European policy makers would act to help ease the region’s debt problems, amid news that finance ministers and central-bank governors from the Group of Seven major economies will hold an emergency conference call later Tuesday to discuss the euro-zone crisis.