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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: smolejv@gmx.net who wrote (3484)5/8/2001 8:30:21 PM
From: tradermike_1999  Respond to of 74559
 

Hi TMike - need your help on technical side re VIX. Evidently my assumption than a rise in VIX would be a sign of things about to happen (marklet sentiment turning around, panic on the rise etc) is not correct. So far I saw volatility indicators always as some sort of a sound level check from the market beehive. And when the bees are silent (low vol), well, I would assume things are (about to turn..) hunky dory. Or that the majority of the bees is confident about their future.


I wouldn't spend so much time watching how the VIX moves day to day or intraday. I just look at the overall level of and pay attention when it gives an extreme reading - mids 30s, low 20s.