stock market volatility index - how to read the vix index
"stock market volatility index - how to read the vix index"
in the news stock market volatility index - how to read the vix index? What this all about..... See below.
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Sentiment Trader notices that right now, almost no one is studying and talking about the VIX chart. So lets us get out of the gutter and talk about what is going on and what it could mean.
2 of our top analysts think this chart is bearing the brunt of what could be called an OMINOUS WARNING SIGN.... what is that??
Well to cut a long story short our - VIP MEMBERS HERE - have been doing very well this year, and we can tell you, whether you like it or not, the stock market is all about the VIX this years. Its the inverse to the stock market, so when vix goes DOWN, the market usually goes up. And visa versa.
Recently not only is the VIX LOWER down, but you can see its staying down in very low lying areas. And be that as it may we have not had a HUGE VOLATILITY SPIKE for about 12 months.
Now,.... if you are somewhat of a good investor and follow past trends, all this could be starting to add up, because low vix for over 12 months ....lets think back, that has not happened since 2007, when the stock market topped out and WE EXPERIENCED the global financial crisis and we experienced a HORRIFIC market crashes several months later in 2008.
Here is the chart below. You can see they are suppressing the VIX here.
Not only that, you can see that we have been in low periods even FRESH lows over the last few weeks, so this chart does need attention! This is quite interesting.
Look, we are not saying this is going to cause a stock market crash in the next 4 weeks. But you need to bring this to the forefront of your mind. Usually when this sort of action happens in the VIX is not a very good omen, looking back over the last 50 years of history, on the charts!.
I guess time will tell this time around.....but we have marked out the different events that made the VIX spike up fast! It seems like a long time before we had a major event. Perhaps that some bad news is coming down the pipeline sooner than we expect...
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