The VIX drops to 19.11 a level not seen in almost two months. As volatility drops, the intraday and day to day large point moves should subside. The 200-day MA, now at 18.36, is a key short term signal for markets. Above the 200 bears rule; below the 200-day the bulls rule. Watch this like a hawk over the coming days. Depending on if you are long or short the market, this chart will identify you as either a hero or a zero. If bullish, you want the VIX in the green circle in the right margin. If you are bearish, you want the VIX in the red circle in the right margin. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 8:39 PM EST Tuesday Evening, 3/1/16: Volatility drops today through 19 then through 18 creating rocket fuel for the stock market. The VIX falls through the 200-day MA at 18.45, closing at 17.70, signaling bullish markets ahead. A back kiss of the 200-day will likely occur. Market bears are toast and the bulls will rally stocks as long as the VIX remains under 18.45. The bears will growl only if the VIX moves above 18.45.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.