This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Insiders Out?

Updated from 7:10 p.m. ET to include added commentary on the jobs report, and Tyson Foods quarterly report.

NEW YORK ( TheStreet) -- So that's another nothing day for stocks in the books.

Volatility is on holiday so far in 2012. The VIX, Wall Street's so-called fear gauge, has been sitting below 20 since Jan. 19. The Dow Jones Industrial Average, despite gaining 4% year-to-date, is down in seven of the last nine sessions and has still only finished a single session with a triple-digit swing in 2012, and that was Jan. 3, the very first one of the year.

At least one market watcher is finding the lull a bit unsettling. Jonathan Golub, chief U.S. equity strategist at UBS, pointed out the incongruity of the yield on the 10-Treasury bond sitting right around 50-year lows, indicating many investors are decidedly risk-off, and the VIX resting just below its all-clear level.

"While Treasury yields indicate caution, the same cannot be said of the VIX, which remains at a sub-20 level," Golub wrote. "This disconnect -- between bond and stock indicators -- is one we are uncomfortable with."

Bespoke Investment Group looked at the action in theS&P 500 on Thursday, noting the index has had only 2 sessions with 1%-plus moves (both positive).

The firm says the average change in the S&P 500 has been 0.79% plus/minus over the past 50 days, a stark contrast to the average 1.92% swing seen a few months ago and even more striking when considering what occurred when the credit bubble burst three years ago.

"Last year's volatility, while rough, was nothing compared to what we saw during the financial crisis," Bespoke writes. "At one point in early December 2008, the S&P 500 had averaged a daily change of +/-4.02% over the prior 50 days, which is the highest level ever seen in the index's history. With the entire US stock market swinging an average of 4% on a daily basis for more than two months, it's no wonder that individual investors are still having a tough time dipping their toes back in the water, even three years later."

Individual investors are slowly coming back though with the latest data from the Investment Company Institute showing mutual funds investing in equities took in $1.17 billion last week, making it two weeks out of the past four where stocks saw inflows.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DRIV $25.99 0.23%
AAPL $93.74 0.00%
BRK.B $145.48 0.00%
CLX $125.23 0.00%
SPY $206.33 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs