Volatility: Out for Lunch
The VIXY, VIX is taking a break and along with it the iPath S&P 500 VIX ST Futures ETN (VXX) continues to sink to new lows daily. The question becomes will the VIX and VXX bounce back? Should we be afraid or just ignore the warning and buy up everything?
Great 2 second analysis on the state of the VIX comes from Larry Conners at TradingMarkets.com. Here's what he has to say:
Is The VIX Too Low?
A lot has been written recently about how low the VIX is, how it has to go higher, and therefore the market has to drop. The reality is it’s not true.
If you look at the bull market from 1995-1999, you will see a steady rise in the VIX during that bull market run. Higher long-term VIX levels do not equate to lower stock prices.
Also, as you can see from the statistics below, the VIX has spent over half of its time over the past two decades (from 1992 through Tuesday) between 10-20. So the level it’s at today is very, very normal.
This doesn’t mean the VIX won’t spike from here (it certainly can). What it does mean is that those who are saying the VIX has to rise, or the market has to drop, are simply guessing and not looking at the historical facts.
Bottom line: Enjoy the break in volatility Masters, its time to enjoy the ride.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Watch As A Ukraine MiG "Buzzes The Trees" To Spook East Ukraine Civilians | ZeroHedge
- On a More Positive Note… | iBankCoin.com
- Has Inflation in the U.S. Bottomed Out? | Financial Sense
- BRICS Consider Creating IMF-Alternative As US Loses Credibility | ZeroHedge
- Breathe in These Five Stocks Today | iBankCoin.com
- High and Tight Oorah Gas | iBankCoin.com
- Philly Fed Surges To 7-Month Highs As "Hope" Crashes To 1-Year Low | ZeroHedge
The most relevant financial news and articles from the Internets
- Blackhawks Coach Appeared To Make An Obscene Gesture Towards Referee | Business Insider
- 10 Things In Tech You Need To Know This Morning (YHOO, GOOG,... | Business Insider
- Notable... | StreetInsider.com
- CHART OF THE DAY: We Are Currently In The Weakest Earnings Cycle In 55 Years | Business Insider
- 4 Reasons Amazon Should Acquire Sears | Business Insider
- Johnny Depp's New Movie 'Transcendence' Says Technology Will Turn Us Into X-... | Business Insider
- Snapchat Uses A Hokey-Sounding Success Strategy And Makes Employees Talk About Their Feelings... | Business Insider