To follow-up on my initial post this morning, J.C. Parets (@AllStarCharts) has a great piece up on his AllStarCharts.com blog, arguing that we do not necessarily need to see another VIX super-spike anytime soon.
Occasionally we’ll bring up the volatility index if we think that it’s something worth noting. More often than not we just consider it a negatively correlated asset to US Equities. So whatever stocks are doing, the VIX should be doing the opposite.
But every now and then, two weeks ago included, we’ll notice something a bit more actionable in the so called ‘fear index’. On Monday, Carter Worth, Chief Market Technician at Oppenheimer, came on CNBC to talk technicals with Maria. Put simply, he feels that the VIX is still quite elevated relative to the lows of the past decade. But more importantly, the spikes that we see up towards 35-40 over the last few years tend to come after a certain amount of time has passed. In other words, there are intervals between them. And it would be too soon right now for another spike.
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nice of u giving the stage on your blog to other guys