Bloomberg: "Disorderly UK Gilt Rout Is a Test of Confidence for Fearful Markets"

By in
Bloomberg: "Disorderly UK Gilt Rout Is a Test of Confidence for Fearful Markets"

Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:

… “That’s just a hairline away from the panic level Nicholas Colas, co-founder of DataTrek Research, is looking at. To him, 33 to 36 is the range that would signify “panic,” a level the VIX hit just once this year on March 7. (The VIX closed at 36.5 that day while the S&P 500 ended lower by almost 3%.)…

…What Colas wants to see is the VIX over 30 for several consecutive days, since recent history suggests that a near term bottom may be in at that point. Monday marks day one — so the VIX has to sustain that level before getting his attention. And he suspects that will only happen when something “breaks”…”

Full article here on Bloomberg.