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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (26907)6/8/1999 11:59:00 PM
From: IQBAL LATIF  Read Replies (1) of 50167
 
Have a look at this volatility index, I think this should also be part of strong daily armor of any trader.. I do follow it on daily basis and think it is docile however one earlier sign of a major movement in the market brewing under the surface usually caught by this index.. now I have for you go this configuration of 5 years VIX...

quote.yahoo.com^VIX&d=5ym

If you look at it closely you may find that all major sell off have been preceded by this break of 50 days MA and 200 day MA of VIX, VIX moves opposite to the market, i use it as a barometer but would never make a mistake to employ it for short term trading. One can take advantage of this index if he is looking at bonds equities and various other sectors.
quote.yahoo.com^VIX&d=2ym

Now if you look at this 2 year chart you may see that falling volatility is rather sign of a reversal, so for me I will be watching it with other indexes during the day as I think next few days are quite sensitive for the market, I will be concerned if we see the readings of 30-35 that will indicate a reversal above 50 days ma and preparation of a slide... this is just one of them nay things which a trader should look at notwithstanding a global issue a trader needs to be as close and as simple to the ground realities as possible, KISS is the rule you make money on.
Right now this is at the lower end of the 52 week high of 60.
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