Tuesday, December 30, 2008

Don Coxe Indicators

Don Coxe Indicators

In the November Basic Points, Don Coxe had four indicators to gauge when "Mama bear is done her worst".

1) TED Spread: "We suspect if it breaks 150 and stays there for at least a week, the financial crisis part of this drama, while not humdrum, will no longer command center stage".

The TED Spread is currently at 132 and has been under 150 for pretty close to a week (if not already a week).

2) The bank stock index continues to outperform the S&P.

1 Month: S&P -3%, BKX -13%

3)The VIX Index Retreats

Currently at 43.
Month Ago: 60

4) The YEN and the U.S Dollar Decline

US Dollar index currently at: 80.5
Month Ago US Dollar Index: 83.5

JPYUSD currently at: 90.5 (Yen has strengthened)
JPYUSD Month Ago: 93

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