vix fear index chart - how to trade vix
"vix fear index chart - how to trade vix"
in the news vix fear index chart - how to trade vix? What this all about..... See below.
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Sentiment Trader has been providing data to our VIP members here, which is quite interesting. Probably one of the most interesting things we have seen this year.
(Investing and saying LETS BET long on the VIX is a "quick way to lose money)
Betting against stock market volatility is one of the hottest trades in the market. But it has not been working out too well as of late.....
It's also one of the most controversial, with many pundits viewing it as increasingly vulnerable to a market blowup.
Sentiment trader — who has nailed the eight-year bull market at every turn — has decided its the best to be staying out of the fray completely. Having experienced considerable success simply trading on the benchmark S&P 500 index and evaluating stocks on an individual basis, hopping in to the VIX here and expecting an explosion higher, might be an exercise in 2017 deemed as pointless.
Our top analysts think our view on CBOE Volatility Index — or VIX — while also covering such hot-button market topics as equity valuations, exchange-traded funds, the effect of politics on the market, and what important factor he thinks investors are missing.
What we have note is a strange repeating pattern on the charts. everytime we go to 16 or 17 on the chart, the VIX just stalls and then DROPS like a rock!! Have a look at the chart we have drawn below. A strange phenomenon we call, "Twisted Fate"
One our our [ VIP clients here ] asked about low volatility and why the trade is not working....we replied:
"Like so many things, that is a characteristic of a market. When people say to me that the market hasn't had a 1% run in a certain number of days, that tells me just that. It doesn't tell me anything about tomorrow or what's going to happen. No one really knows what is going to happen tomorrow or in the days ahead!!!
The VIX in 2017 really isn't the fear index — it's a measure of potential volatility in either direction. Yet for some reason, people have put on the ideology that if the VIX spikes, the market's going to go down.
No,.... that is not always the case....when the VIX spikes, it means the market could go either up or down a lot. If you go back to the bottom in 2009, the VIX was telling you that there were going to be another two years of a bear market. It tells you about volatility, not direction. We like to think of this as just another vehicle. It's totally meaningless with regard to the future of the market or telling you what is about to happen. Its been like that for the last 10 years
In an uninteresting market, people have found that this is something you can play. It seems like VIX ETFs and [exchange-traded notes] are a quick way to lose money. And the last few months people are losing lots of money scratching their heads, without realize what we are talking about here is a very detailed subject, and needs to be talked about.
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