VIX 01 (Jun 09 - Oct 11)

[winston]

Weekly Analysis

The VIX broke to the upside out of its triangle pattern: It held in this range for quite some time. Now it has made a closing high on this new bounce.

Looks as if there will be a test of the bottom of the August trading range.

VIX: 42.96; +4.12
VXN: 44.98; +3.82
VXO: 44.11; +5.31


Source: Investment House

[winston]

INVESTOR FEAR IS AT "HIGH TIDE"

Today's chart is an update on one of the few "matter of fact" statements we're willing to make about the market. It deals with market volatility.

At DailyWealth, we know there are few sure bets in the financial markets… few "this is the case, and it always will be" statements we're comfortable making. The market is just too messy for those kinds of words.

A particular stock investment idea will work for years, and then it won't. A commodity trading strategy will work for years, and then it won't.

But one "this is the case, and always will be" statement we'll stick by is this: "Calm periods of rosy headlines and softly rising prices will always be interrupted by periods of wrenching volatility… and vice versa."

That's just the way the world works. Scientific types call this idea "reversion to the mean."

For a picture of this "always the case, always will be" phenomenon at work, we present the past six years of the Volatility Index (the "VIX"), the most popular gauge of market volatility and investor fear.

Note how the VIX spiked in 2007 (mortgage market fears), 2008 (financial meltdown), and 2010 (Flash Crash). Now note how the VIX eased lower after those scares.

Right now, we've spiked into the 40 range. Fear is at high tide.

Source: dailywealth.com

[winston]

Weekly Review

The VIX pulled back as the market rallied this week, but it has come back to sit right at the top trendline of its triangle and right over the 50 day EMA.

As with bonds, the VIX is primed for a bounce higher. That would mean that stocks fall. We will see how it turns out.

Stocks are in that in between range. They have bounced off the lows, and now what will they do? You could cut the intrigue with a knife.

VIX: 36.2; -0.07
VXN: 37.08; -0.24
VXO: 36.88; -0.29


Source: Investment House

[winston]

Volatility subsides, better tidings for stocks by Prieur du Plessis

The CBOE Volatility Index (VIX) is generally regarded as the “fear gauge” of Wall Street, measuring implied volatility of S&P 500 Index options.

The highest VIX readings occur when investors become nervous and anticipate huge equity declines, generally as a result of some crisis as shown on the chart below.

After the surge in volatility during the first part of August and the high levels remaining through the end of September, it would seem the worst of the storm is over, at least for now.

Consistent with a decline in the VIX, stock markets have improved and could see further upside as volatility reverts to more normal levels.

http://www.investmentpostcards.com/2011 ... pe+Town%29

[winston]

Weekly Review

The VIX has fallen off of the proverbial table as the market has rallied. That is exactly what you would expect.

Indeed, it has broken below an important support level. That bodes well for the market overall. It has made a good move, no doubt.

VIX: 28.24; -2.46
VXN: 28.69; -1.61
VXO: 27.15; -2.01


Source: Investment House

[kennynah]

i dont see why this cannot go down to 15, as it did and stayed at this level for several months in the first half of 2011

[winston]

TOL:-

VIX at 35.

Is this enough to frighten you ?

Or are u so frightened already, that you have sold everything ?

So even if the VIX is at 70, it does not really matter to you ..

[winston]

VIX: 31.32; -3.46
VXN: 31.42; -3.36
VXO: 30.14; -3.42

[winston]

Investors' appetite eased for protection in the options market against losses, with the CBOE Volatility index VIX <.VIX> -- a 30-day risk forecast of volatility in the S&P 500 -- falling 29.86 on Wednesday from 32.22 the day before.

Source: Reuters

[winston]

SENTIMENT INDICATORS

VIX: 24.53; -0.93
VXN: 25; -1.28
VXO: 24.21; -0.44


Source: Investment House