Tag Archives: VIX

S&P 500/VIX Correlation And The Perils Of Visual Charting

Another indicator of market tops surfaced yesterday: When the 10-day correlation between the S&P 500 and VIX is positive, then this indicates a price top. The problem is that this does not work in practice unless one is just a … Continue reading

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Volatility Bulls: The New Permabears

Each time there is profit taking in the stock market, the permabears of the early phase of the uptrend show up as volatility bulls. This is hilarious.

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VIX Below 10 Rant

Values of VIX below 10 occurred before the 1990s uptrend and then near the top of the 2000s uptrend. The sample is so small and the evidence totally inconclusive. Do not look for help from VIX in forecasting future direction … Continue reading

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VIX And Passive Investing Risk

The CBOE volatility index® VIX® is an instantaneous measure of expected fluctuations in S&P 500 in the next 30-days. This is an instrument for short-term traders. Passive investors should use different measures of risk. I offer an example.

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A Mean Reverting Stock Market With Increasing Risk

The daily returns of the S&P 500 exhibit mean-reverting behavior since the late 1990s but the index reached new all-time highs recently. I show in this article that this has been accomplished at increasing risk, despite beliefs that volatility is … Continue reading

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VIX Is Fooling Bears

Although the high of VIX was below 11 on January 27 of this year, the SPY ETF has gained 1.11% since. Some traders expected a quick rise in volatility and shorted the market but any gains in VIX evaporated fast … Continue reading

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