Saturday, April 4, 2026 
Stress Indicators
The TED Spread is above 300 basis points. This is not a good sign. View this through the lens of caution. This is no time to try to call a bottom. The bottom will only be known in hindsight. From this traders point of view, the bottom is far far lower. For another view of this, check out The Chairman’s blog.
Along with the TED spread, take a look at the $VIX. Typically, when the $VIX hits the mid 30’s to low 40’s, it backs off pretty quickly. It is not behaving as it typically does. It looks to me like it is basing for a move higher. Perhaps higher than any of us have ever seen. Downside insurance remains my play.
Peace
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Yes, I wondered about the VIX staying up there. You are correct as it always shows extreme panic and then falls.
Kurt
Comment by Kurt — September 24, 2008 @ 6:07 pm
[...] to take out their lows from November. Then you’ll see the TED Spread zoom higher than it did last year. Guess what happens then? The $VIX goes even higher than it did in October of 2008. Weekly chart of [...]
Pingback by The Credit Markets and the TED Spread | Trade the Picture — February 27, 2009 @ 2:37 pm
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