Maya_

Wednesday Outlook: Commodities, Global Markets

The 10 year spy volume data is most interesting. Compare the volumes during this bear with those on the prior one - volume is high, very high this time round. It looks like there has been a generational shift in wealth; possibly from older folks to those younger. I do not think capitulation of this level has ever been evident since the 70's. Maybe, just maybe the buyers are now ready to hold long term. More money chasing reluctant sellers might mean more upside. I would like to see volume return to less surreal levels in a long term context - the VIX has now returned to a more sensible level in the long term basis maybe much lower volumes will soon follow.