Archived IMT (2009.01.02)

We have yet to see a rebound in equities of more than 25% after the last two major bounces were confined to less than 20%. In past bear markets, false rallies have extended to as far as 35% before selling re-emerged. The last 3 weeks of 2008 witnessed a moving way from risk-driven trades in currency markets (whereby dollar and yen strengthen during falling equities) and in favour of dollar-specific trading. But with risk appetite pushing higher and the VIX falling to 3 month lows at 40, this would correspond to the following market parameters: ... Rest available to subsribers