Tag Archives: VIX

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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VIX Trolls [Premium Articles]

This article rebuts claims by some market analysts about VIX and exposes the main flaw in strategies developed by inexperienced quants that trade volatility ETPs . This is premium content. Please login or subscribe to continue reading…

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All That VIX Nonsense

I just about had it with all that VIX nonsense in the social media. VIX is an overrated indicator that reacts to price. Price is everything and VIX obeys price in a special way: When prices rise, VIX falls and … Continue reading

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VIX Does Not Always Move Opposite To S&P 500

Yesterday the S&P 500 fell but VIX also fell. Some traders were expecting VIX to rise since stocks fell. But in the markets there are no perfect correlations. Historically, the VIX has moved opposite to S&P 500 about 78% of … Continue reading

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An Increase in Volatility May Not Signal a Stock Market Top

As stock market volatility is decreasing towards historic lows, some may think that a sudden increase will signal a top. But history shows that although some volatility indicators lead price before major tops, they cannot establish timing, and reversals may … Continue reading

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The Market Can Rise With Increasing Volatility

History tells us that the market can continue to rise even as volatility increases. Therefore, higher volatility is not a sufficient condition for a market trend reversal. Furthermore, there seems to be no connection between a low put/call ratio in VIX options and … Continue reading

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VIX Redundancy

I have argued in the past that VIX, for all practical purposes, tracks the inverse S&P 500 index. Actually, there are much better technical indicators of volatility, like for example the Average True Range (ATR) measure. It is shown here that VIX … Continue reading

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Volatility is Not Always Related to High Risk

In the last 20 years the best time to buy stocks was during periods of high volatility that marked the lows of major bear markets. Yet, the timing of long entries of many investment models is based on low volatility, … Continue reading

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