As the major U.S. indexes grind higher into overbought territory, VIX, the CBOE fear index, points to lower stock prices ahead. VIX measures the implied volatility of the S&P 500 and is often viewed as a predictive indicator because as VIX …
Low readings by the market’s so-called fear gauge may be signaling comfort, but a deeper look into the VIX options market shows a record amount of activity in contracts that can protect against a market slide. Investors have snapped up …
Stock market volatility is often wrongly portrayed by the mainstream media as an enemy. In reality, it’s not. First, prudent investors use volatility (ChicagoOptions:^VIX) as an effective tool to measure the stock market’s psychology. Why?
(Currently, the S&P 500 is sitting at about 1,950). Related: The stock market is crazy, but don't panic 2. VIX fear factor index above 40 The other factor traders (and computer algorithms) watch is volatility, specifically the VIX Volatility Index.
Michael Lombardi: The euphoria among stock advisors and investors alike seems to be increasing as key stock indices …
WHAT HAPPENS NOW? DOES IT AFFECT MY 401(K)? If financial markets continue to make these large swings up and down, the VIX will remain elevated and it will be a sign that traders are uncertain on where the stock market is going …
If you’ve ever walked a dog, you know about the zigzag path that dogs take down a sidewalk. After all, there are great odors to sniff on both sides of the sidewalk so your dog will veer far to the left, take a few deep sniffs before veering off …
As Chien notes, the big question really is whether the growth of VIX ETPs has affected the Vix market in a similar way to the single stock market. He notes there is increasing evidence that single stock volatility, for example, is being driven …
1. The trend has been down with each successive peak being lower. (A lower VIX correlates with a higher stock market and a higher VIX with a lower stock market.) 2. The last peak breached the resistance line which is normally a not so good …
In fact, during one of those Fast and Furious moves, the VIX surged more than 50%! (See number 2 on the chart below) Despite one all-time high after another in the U.S. stock market (NYSEARCA:VTI), there’s been little conviction about …