The Fed hike interest rates with 25 basispoints. Stock markets rallied unanimously, currencies and commodities ended ‘status quo’. Is a “risk on” mood back, and is it time to become more aggressive?
We review our 5 “risk on” indicators which we closely monitor, according to our methodology, and where we stand in the “bigger picture”.
1. VOLATILITY INDEX
The VIX index spiked above the important 20 level earlier this week, but came down today to close the session at 17.8.
That is encouraging, definitely. But watch the higher lows pattern on the chart below since August this year. We are not there yet, and the next “low” will be an important level to watch!