Volatility Ho! ~ The Risk Averse Alert

Monday, March 12, 2012

Volatility Ho!

Vexing about the VIX? Here's my take...


It's saying the market could soon turn volatile. Consider $VIX momentum (bottom panel). It is climbing and about to cross its 0-line. As was previously observed, the market's counter-trend rally off March '09 bottom consistently has stalled whenever the Volatility Index's momentum turned positive.

Now, what are odds $VIX momentum is about to turn positive?

How much lower is $VIX likely to go?

The market could soon turn volatile. Case closed.

Fast Money
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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