The VIX, or volatility index, which can be used to gauge fear in the options market, remains relatively low at 25/26 compared to prior corrections since the cyclical bull market began in March 2009. As you can see on the weekly chart below, there is much room for the VIX to spike if we see some real fear here, up to about 45. It does not always need to happen, but usually a wash-out capitulation-style event gets us much closer to a tradable bottom.
My interpretation of the VIX here is that there remain many stubborn longs in the market who are shaken, rattled, but have not yet rolled.
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good point, when people capitulate that’s when the vix really rocks
thanks
…so are you a buy on VIX?
I don’t like trading VIX. It is an instrument to observe here as a proxy for fear in stocks, at least for me.
I just wonder if the precious metals are going up for a different reason other than the prospect of QE. Today’s move has been very impressive (I saw your earlier post about the miners as well).
I agree. Curious about that too.
I sold my silver miners this afternoon but am sticking with my gold diggers – – figuring that silver’s rise today will not last into a weak economy.
fly like a buterfly, sting like a bee
just not today..poor kitty!
speaking of which..cat fight going on over there somewhere..
RRrrrrrr!
😉
~Sincerely, Lady SOoooz
butterfly..
a ‘Hi’ to Val up there..long time no see on these pages of iBC..hope all is well,yes?