{"id":442916,"date":"2022-05-06T18:48:00","date_gmt":"2022-05-06T15:48:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/in-one-chart-stock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst\/"},"modified":"2022-05-06T18:48:00","modified_gmt":"2022-05-06T15:48:00","slug":"in-one-chart-stock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/in-one-chart-stock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst\/","title":{"rendered":"#In One Chart: Stock market \u2018liquidation environment\u2019 needs to get \u2018hotter\u2019 before it burns out: analyst"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a414063beffe\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a414063beffe\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-stock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst\/#%E2%80%9CIn_One_Chart_Stock_market_%E2%80%98liquidation_environment_needs_to_get_%E2%80%98hotter_before_it_burns_out_analyst%E2%80%9D\" >&#8220;In One Chart: Stock market \u2018liquidation environment\u2019 needs to get \u2018hotter\u2019 before it burns out: analyst&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-stock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst\/#Subdued_VIX_signals_mean_investors_dont_see_a_market_bottom_near\" >Subdued VIX signals mean investors don\u2019t see a market bottom near<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-stock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst\/#William_Watts\" >William Watts<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CIn_One_Chart_Stock_market_%E2%80%98liquidation_environment_needs_to_get_%E2%80%98hotter_before_it_burns_out_analyst%E2%80%9D\"><\/span>&#8220;In One Chart: Stock market \u2018liquidation environment\u2019 needs to get \u2018hotter\u2019 before it burns out: analyst&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Subdued_VIX_signals_mean_investors_dont_see_a_market_bottom_near\"><\/span>\n  Subdued VIX signals mean investors don\u2019t see a market bottom near<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000846715\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000846715\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       This week\u2019s violent U.S. stock-market turnabout may have left investors feeling shaken, but a liquidation phase that may finally be under way will probably need to \u201cget hotter\u201d before it burns itself out, a top Wall Street chart watcher warned on Friday.<\/p>\n<p> A remarkable thing about the market\u2019s wild two-day swing Wednesday and Thursday is that market internals \u2014 indicators measuring things related to the number of advancing stocks in an index versus declining stocks \u2014 were whipsawed, too even though they tend to be \u201cless fickle\u201d than prices,  said Jeff deGraaf, founder of Renaissance Macro Research, in a Friday note.<\/p>\n<div class=\"paywall\">\n       The Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.72%<\/bg-quote><br \/>\n       plunged over 1,000 points, or 3.1% on Thursday after a rise of more than 900 points on Wednesday, while the Nasdaq Composite<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"negative\">-0.90%<\/bg-quote><br \/>\n       dropped 5%,  the worst one-day performance for both indexes since 2020. The S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.66%<\/bg-quote><br \/>\n       fell 3.6% Thursday. Stocks were down, but off session lows, on Friday.<\/p>\n<p>This week saw strong internals as equities surged higher following Wednesday\u2019s Fed meeting, while the Thursday selloff was accompanied by one of the worst set of internals, with just 5% of Russell 3000<br \/>\n        RUA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598149\/delayed\" class=\"negative\">-0.61%<\/bg-quote><br \/>\n       stocks advancing amid 8% up volume, he noted. (see chart below).<\/p>\n<p>DeGraaf noted that the back-to-back swings in the internals this week are rare, with the last one occurring close to the COVID lows in stocks of March 2020. Indeed, investors had never seen a swing in internals as severe as Thursday\u2019s before the financial crisis of 2008-09 (see chart below).<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:73.28571428571429%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-539424?width=540&amp;size=1.3646055437100213 540w, https:\/\/images.mktw.net\/im-539424?width=620&amp;size=1.3646055437100213 620w, https:\/\/images.mktw.net\/im-539424?width=639&amp;size=1.3646055437100213 639w, https:\/\/images.mktw.net\/im-539424?width=700&amp;size=1.3646055437100213 700w, https:\/\/images.mktw.net\/im-539424?width=700&amp;size=1.3646055437100213&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-539424?width=700&amp;size=1.3646055437100213&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-539424?width=700&amp;size=1.3646055437100213&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-539424?width=700&amp;height=513\" alt=\"\" title=\"\">\n      <\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n          <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Renaissance Macro Research<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/p><\/div>\n<p>       But before talk of the COVID low gets would-be bulls too excited, the analyst warned that the market might have a way to go before it exhausts itself. Meanwhile, the S&amp;P 500\u2019s drop below Wednesday\u2019s low, meanwhile, turned a call for a stock-market bounce into \u201ctoast.\u201d<\/p>\n<p>\u201cWe\u2019re getting into a liquidation environment, and while those often burn themselves out, they get hotter before they do,\u201d deGraaf said.<\/p>\n<p>Market watchers who doubt stocks have yet bottomed have also noted the lack of a convincing rise in the Cboe Volatility Index<br \/>\n        VIX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598281\/delayed\" class=\"positive\">+3.14%<\/bg-quote><span>,<\/span><br \/>\n       or VIX, an options-based measure of expected 30-day volatility in the S&amp;P 500. Market bottoms often come as the VIX, a proxy for trader jitters, spikes, but the rise in the index this week has been relatively subdued.<\/p>\n<p>The VIX topped 35 in early action Friday, above its long-term average below 20, but has failed to take out last week\u2019s high above 36, much less the March high above 37.<\/p>\n<p>\u201cThis suggests that investors believe an even deeper selloff may occur over the coming months with the Fed expected to once again raise interest rates by 50 basis points at the June meeting,\u201d said Robert Schein, chief investment officer at Blanke Schein Wealth Management, based in Palm Desert, Calif., with roughly $500 million in assets under management.<\/p>\n<p>\u201cIf investors truly believed the bottom was near, we would likely see an even higher VIX,\u201d he said, in emailed comments. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"William Watts\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/william-watts\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/wlwatts\",\"text\":\"@wlwatts\"},{\"type\":\"link\",\"icon\":\"facebook\",\"url\":\"https:\/\/facebook.com\/williamwattsmarkets\",\"text\":\"williamwattsmarkets\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:bwatts@marketwatch.com\",\"text\":\"bwatts@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"William_Watts\"><\/span>William Watts<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"205_MW\" author-name=\"William Watts\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fstock-market-liquidation-environment-needs-to-get-hotter-before-it-burns-out-analyst-11651852101%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7CEB-7B42FF7339DC%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;In One Chart: Stock market \u2018liquidation environment\u2019 needs to get \u2018hotter\u2019 before it burns out: analyst&#8221; Subdued VIX signals mean investors don\u2019t see a market bottom near This week\u2019s violent U.S. stock-market turnabout may have left investors feeling shaken, but a liquidation phase that may finally be under way will probably need to \u201cget hotter\u201d&#8230;<\/p>\n","protected":false},"author":1,"featured_media":442917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-539326\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-442916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=442916"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442916\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/442917"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=442916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=442916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=442916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}