Premier VIX, some analyst don't.
And I am very categoric on this issue too: low volatility means small changes in price.
Higher volatility means larger changes in price, these can be up or down.
The direction is the one of the broader market. Best recent example is Nov 19th last when VIX printed a 19.53 low.
I can only repeat that the 20-30 rule of extremes o the VIX only were MOSTLY true in the seconf half of 1997, 1998 and the first half of 1999. In Dec 1998, VIX printed 19.34 in the middle of a rally.
On Apr 04, VIX printed an intraday of 35.43. On Apr 12, VIX sent what appeared to be a strong confirmed buy signal, closed 32.23. Just look at any index. What would have happened if you thought of outsmarting the market at that time.
Printing above 30 was an indication of a highly volatile market, sorry, not a buy signal as most wiseguys are posting currently.
Some of my previous posts here:
Message 14240882
Message 14241800
Message 14241600
Also check the posts of whativer, the only fellow till now who has downloaded the VIX data and also knows what the figures are historically, not from reading other peoples opinion.
VIX IS A MEASURE OF THE VOLATILITY it is NOT a trading system. |
