Charting the Stock Market Crash of 2011

Amazing charts show the massive carnage.

Here is a chart of the % of S&P 500 stocks above their 50 day moving average. We are at the same crash levels back in October of 2008.

S&P 500 stocks above 200 day average--its low, but has been lower.

The CBOE Equity put/call ratio--generally a contrarian indicator. We are near the highs reached back in 2008. Everybody wants to buy puts near the bottom.

The VIX--otherwise known as the fear index shows the real fear in this market. We either get a Lehman event or we are near capitulation.

SP 500 Bullish sentiment--not near the lows seen during October 2008 or March 2009, but getting very close.

Baltic Dry Index--used to be a good leading indicator. It is hovering just above 2008 lows.

Based purely on technicals, the market has only been this oversold twice:  5/21/40 & 10/19/87.  The SPX was +9.4% and +8.1% a month later according to

While the AAII investor sentiment will be released on Thursday--we can imagine that it is somewhere around 5% bullish and 95% bearish.

Comment: Don't listen to the fools on CNBC saying it is time to be defensive--the time for that was 2 weeks ago before the crash. Now is the time to buy safe stocks for a tradable bounce in the markets. I like tobacco stocks and MLPs (with no commodity risk). 

Black Swan Insights


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