Amazing! 15.8% increase in a month!!! WOW!
Don't they know that is meaningless drivel? It's not an absolute amount that matters, it is relative.
There are some days when VIX rises or falls more than 20%...
These types of articles and headlines are just another indicator that a ST bottom has or is being made.
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BOSTON (MarketWatch) -- A widely quoted fear index is set for its largest percentage August rise in more than 10 years as equity markets slump on fears the economy is slipping back into recession.
The CBOE Market Volatility Index (VIX 26.18, -1.03, -3.79%) is up 15.8% for the month through Monday's close, according to FactSet Research.
Known as the VIX, the benchmark measures implied market volatility using options contracts tied to the S&P 500 Index (SPX 1,052, +2.83, +0.27%) . It tends to rise when stocks come unglued, which is why traders use it as a gauge of fear in the markets.
http://www.marketwat...-31?siteid=bnbh
'VIX set for largest % August rise in more than 10 years'
Started by
dTraderB
, Aug 31 2010 11:55 AM
1 reply to this topic
#2
gm_general
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- TT Member+
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Posted 31 August 2010 - 03:51 PM
Amazing! 15.8% increase in a month!!! WOW!
Don't they know that is meaningless drivel? It's not an absolute amount that matters, it is relative.
There are some days when VIX rises or falls more than 20%...
These types of articles and headlines are just another indicator that a ST bottom has or is being made.
-------
BOSTON (MarketWatch) -- A widely quoted fear index is set for its largest percentage August rise in more than 10 years as equity markets slump on fears the economy is slipping back into recession.
The CBOE Market Volatility Index (VIX 26.18, -1.03, -3.79%) is up 15.8% for the month through Monday's close, according to FactSet Research.
Known as the VIX, the benchmark measures implied market volatility using options contracts tied to the S&P 500 Index (SPX 1,052, +2.83, +0.27%) . It tends to rise when stocks come unglued, which is why traders use it as a gauge of fear in the markets.
http://www.marketwat...-31?siteid=bnbh
Used to be that if the VIX rose by 10%+ in one day, that meant a heavy up day the next day for the indexes. Or if it fell 10%+, a down day. That stopped working long ago, though.
Edited by gm_general, 31 August 2010 - 03:51 PM.
