FYI from another thread.
To:CookiePuss who wrote (34229)
From: bcrafty Monday, May 21, 2001 10:06 PM
Respond to of 34237
Cookiepuss, about the VIX
VIX is that ointment that your mother would rub on your chest when you were a kid and you had a cold. Now that the weak attempt at humor is out of the way, the VIX is a kind of a volatility index. It really doesn't tell us a lot by itself, which is true of many indicators, as there's no single indicator one can look to tell very much without looking at it in conjunction with other indicators. Many feel that a level like the current level shows complacency on the part of current investors, and thus it might be one of many indicators signaling that a reversal is coming soon.
Look at the chart below: bigcharts.com.
As you can see, we haven't had a VIX this low since the beginning of February, and we all know what happened then <ggg>
I've really oversimplified things in the above explanation, but it might give you some type of answer to your question. Louis V. Lambrecht is this board's resident VIX expert, so you might ask him for more info, but I bet he'll tell you that the VIX doesn't mean a lot by itself, and doesn't mean as much now as it used to.
P.S. I like your screen name, as I like cookies and cats as well.
$VIX is going down.
Align the AMAT with the VIX, interesting.
Stan |
