VWSI Lifts to +3

Those who read this segment on a regular basis have no doubt probably determined that following the VIX Weekly Sentiment Indicator (VWSI) is a little bit like undertaking a police stakeout: lots of waiting around for a chance to be tipped off to something significant – that may or may not be just around the corner. You never know when something important is about to happen, so it is important to pay attention and be able to react quickly to what develops. After six relatively quiet weeks, we saw the needle on the VWSI move from zero to +3 on Friday. I’m not ready to say that this is the calm before the storm once again, but the next two weeks should certainly be watched closely for any signs of returning volatility.

(Note that in the above temperature gauge, the "bullish" and "bearish" labels apply to the VIX, not to the broader markets, which are usually negatively correlated with the VIX.)

Wine pairing: The last time the VWSI hit +3, I introduced sauvignon blanc as an appropriate wine pairing and recommended that any aspiring sauvignon blanc aficionado start their investigation into this varietal with Cloudy Bay and the Marlborough region of New Zealand. This time around, I offer up a handful of consistently excellent California producers whose sauvignon blanc can be had locally for $10 or less: Bogle; Chateau St. Jean (where it goes under the fumé blanc moniker); Concannon; Kenwood; and Sterling.

Finally, for an entertaining (think the mannerisms of Joe Pesci and Woody Allen blended with the enthusiasm of Jim Cramer) and informative look at sauvignon blanc, check out Gary Vaynerchuk's "Sauvignon Blanc Taste-Off" on wine library tv.