Let us go out on a limb and say that yesterday, Monday February 5, should from now on be known as the “Big Red Day”. Now there was a movie called the “Big Red One” about an army unit in World War II fighting during the allied campaign in Europe during and after D-Day, but that is not the idea here. Rather, we clearly mean that the financial markets as a whole, nearly across the board, were down yesterday. From oil to Bitcoin to the S&P to the Euro, nearly everything was in the red. Notable exceptions were gold and silver, the US dollar, and most impressively the VIX.
To be clear, most things were down and slid lower after the close of the regular session and also in foreign indexes after the US close as well. At this juncture, we can be assured that bargain hunters will come into the markets in mass as some point given that fundamentals in the global marketplace. This does not mean that Tuesday will be a buying day, but what is does mean is that traders will be more on the alert as the markets are finally shifting around and acting, well, normal. Keep an eye on the VIX for clues to when sentiment is beginning to shift to a more bullish perspective. The VIX closed up +115.60% to settle at 37.32 for Monday’s session.