BitMine Chairman Tom Lee said Tuesday that the recent technology-stock selloff had reached a bottom, pointing to Monday’s gains and a change in the VIX curve as support for his view.
The VIX measures expected volatility in U.S. stocks. Lee said its term structure, which compares expected volatility over different periods, had returned to its usual shape by Tuesday after reversing last week. During the inversion, the one-month VIX measure stood above the four-month measure.
Monday’s rise followed negative weekend headlines, and Lee said stocks advancing despite them added weight to his view. He argued that investors saw more risk in markets than conditions warranted.
The assessment is firmer than Lee’s earlier view that the selloff might have marked a low. In earlier comments on the same market signals, he cited stock gains and a shift in the VIX curve as possible signs of a floor.
