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The VIX index has been declining of late, reflecting higher confidence levels from stock market investors. Since 2010, once the VIX (Fear Index) has reached the 14 to 16 level, the market has been close to a short-term high in prices at (1).
Currently the VIX hasn’t reached the 2010/2011 lows, yet it is edging closer to these levels. An popular investment belief is….Bottoms are events and Tops are a process. The VIX isn’t suggesting a top is in place at this time, it does reflect growing confidence in the markets and in the past, these levels do reflect we are nearing a time to be cautious on the markets.
Denis….VXX is designed to move high with the VIX. The correlation can often be poor and frustrating to say the least.
The point of this post was….that fear levels had gotten too low/confidence too high, which in the past two years had led to declines.
Not a pretty day for the longs, especially in the Commodity complex.
Great to hear from you and all the best,
Chris
good work, nice to hear from you.
I thought we could buy the VIXX buy the VIX is that true? If we could, yes when the vix is low it would be time toshort… thanks for all you good work….
tks….
Denis
Sill grasshopper… much to learn… always keeping a broom close so i can use it to kee[p me humble… and a good beating from mr. market does that well also..
Denis….Not sure of your question.
The VIX this low in the past 2 years is suggesting that the market could well be nearing a market high.
When it comes to trading the VIX, I am much more of a fan of shorting the VIX when it is high, due to high fear levels will collapse in time.
Hope this helps. If not please get back to me,
Chris
Hi Chris… so how can we by on the Vix.. do we go to VXX?
Eiffel tower in the making – arna