I wanted to summarize this past historic week with some real metrics, and a discussion on value stocks. Hopefully there is something for everyone.

• The VIX is over 50 for the 5^th consecutive day. We broke 75 for the first time on Friday. It is increasing on the daily chart. As a point of reference, in 1987 the VXO was over 75 for 9 straight days, followed by 8 days at over 50. As a relative point of interest, the Oct 1987 crash was 172 on the VXO.

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This appears to be forced deleveraging of assets undoubtedly fueled by margin selling. Every sector is now beginning to get hit. I put this remedial long term SP500 chart up earlier. This is also an unwinding of borrow short, buy long.

Some general thoughts…

• This is the 4th consecutive day that the VIX(VXO) has exceeded 50. In October 1987 the VXO was over 75 for 8 consecutive days, followed by 9 days at over 50 . 17 consecutive days. We are at day 4 and we just broke 60 for the first time late today.

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It’s a pleasure to be a part of the growing Stocktock community. I have been trading since 1996 and am principally a long term investor with a core holdings portfolio of both deep value and high yielding dividend stocks. I make selections based on fundamentals and my final decision is confirmed using technical analysis which is always within the framework of the existing fundamentals. When markets present the opportunity, I also trade ETFs and work to improve core holdings for short term realized gains. I believe a firm understanding of technical analysis along with proper money management are invaluable skills in any trading environment and are even more critical for today’s challenging markets.

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