VIX (aka CBOE Volatility Indicator) is used as a market sentiment indicator. When the VIX traded under 10 in 2007, it signaled extreme complacency (i.e. most investors are bullish and it is a bad time to buy long positions in the market). When the VIX hit 89 in October 2008, it signaled extreme “fear” (i.e. [...]
Continue reading about VIX Update – signals growing confidence but caution near-term
The VIX has low readings during bull markets and elevated readings during bear markets. Readings are still considered “elevated.”
DOW BREAKS TO NEW LOWS…
With a sharp decline in early trading on Thursday, the Dow Industrials broke below the January-February lows. Chart 1 shows the Dow Industrials trading at its lowest level of the year today. In fact, the key average is around 300 points from its late November low and may be the first [...]