Is the VIX Revealing Complacency?

Tuesday, September 05, 2006 | 11:28 AM

Inverted VIX chart (lower graph) compared with Dow Jones Industrials shows the VIX approaching levels not seen since the May top.


Courtesy of Dick Arms

This makes  it increasingly less likely that we are approaching a bottom than a top; Note that the VIX can maintainthese levels for extended periods of time.

Tuesday, September 05, 2006 | 11:28 AM | Permalink | Comments (31) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



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I REALLY like using the VIX as a buy signal after large, abnormal spikes.

But as you point out, since vol can stay low for long extended periods, it has very little value to me as a sell signal.

Posted by: S | Sep 5, 2006 11:56:27 AM

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