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.


Vix_arms

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)
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Comments

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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