"Water shapes its course according to the nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing. Therefore, just as water retains no constant shape, so in warfare there are no constant conditions."
Sun Tzu

Wednesday, January 23, 2013

Something has Changed...

Yesterday, Goldman was out with a piece where they hypothesized that "we are in a new [lower] VIX regime". Of course, the writings were immediately trashed by ZeroHedge.

I'm not participating in that discussion, but rather highlight another interesting point: the current rally has reached a very broad level. The monthly "NYSE 52 new highs" shows that "something has changed" in the market: at no point during the last 20 years had we seen that many stocks recording new highs:

Not sure if the observation is bullish or bearish, but it at least supports the notion that the market enters a different domain, which was also Goldman's message.