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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (8297)	9/17/1999 12:42:00 PM
From: Q.	Respond to of 78825

VIX is a sentiment indicator. It is a measure of the implied volatility in certain index options traded on the CBOE. I think the data comes from CBOE: cboe.com As options traders get more panicky, they start paying greater premiums and VIX goes up. As they get more relaxed, it goes down. Like other sentiment indicators, it offers more precise indications of a bottom than of a top. The thresholds for what represents a high value of VIX can vary; lately an intraday value in the very high 20's indicates a market bottom. During the Oct 98 panic they got higher, though. VIX is quoted by stock quote services as if it were an index, for example: quote.yahoo.com To get an idea of how VIX indicates market bottoms, you can look at this chart, which is plotted on an inverted scale: decisionpoint.com