Warp & DB:
It's time for my weekly VIX rant. Are we there, Daddy, are we there, are we, are we, are we?
finance.lycos.com
As everyone can see, this is a 2 year chart. So, the question is, when will the VIX be high (high enough to buy)?
Now I add in stochastics (what I'd really like to do is add in Naz and DJIA, but I can't do it with this chart). In any event, you'll see that the stochastics tend to precede the VIX's rise to glory, I think. Also, if I could add the Naz and the DJIA you'd see that the rise of the VIX tends to precede the indices' final bottoming:
finance.lycos.com
What does this all mean? Well, to me, it means we've got time. Maybe not bundles of it, but we've got time. Time enough to be short before liquidating the short positions, time enough to think long and hard before deploying cash and plenty of time before trying to catch le moment de resistance, the absolutely correct moment to use margin on a beaten up market.
Kb |
