I've been watching and analysing the impact of QE on DOWI since the very first quantitative easing executed from US FED on November 2008. Just to recall the important dates, QE2 on Nov 2010, and QE3 on September 2012.
Based on the effect of QE1 and QE2 on the market, I have tried to make a projection on the possible high DOWI would meet with QE3. And my highest...
When we do add DOWI and VIX charts one on the other, we can clearly see the correlation between the two indexes.
When the market is too BULL, VIX is at a very low level. VIX level is too low, and shows an overconfidence of the market. Immediatly a correction, that can be severe in deed is following. Putting a side the technical indicators, we may be able to...
