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See below re the VIX index - so volatility seems to be reducing which must be good for forming a bottom in the US. A 'pre-Lehman' reading must mean that traders are starting to feel that the systemic risk posed by Lehman/AIG has been contained. From that we should see credit markets continue to stabilise as banks lend to each other, leading to a return of function to that market.
Another green shoot or is it going to a false dawn a la housing starts?
From the Lonsec stock brief:
'The VIX, the benchmark index for U.S. stock options, added 0.8 percent to 29.03 today. The gauge slipped below 30 for the first time in eight months yesterday, as traders paid less for insurance against declines in the S&P 500. The last close below yesterday’s VIX level was 25.66 on Sept. 12, the session before Lehman Brothers Holdings Inc. filed for bankruptcy. '
Another green shoot or is it going to a false dawn a la housing starts?
From the Lonsec stock brief:
'The VIX, the benchmark index for U.S. stock options, added 0.8 percent to 29.03 today. The gauge slipped below 30 for the first time in eight months yesterday, as traders paid less for insurance against declines in the S&P 500. The last close below yesterday’s VIX level was 25.66 on Sept. 12, the session before Lehman Brothers Holdings Inc. filed for bankruptcy. '
