it would be a good idea do chart of vix on a monthly time frame, as daily is much more short term, so is your interpretation of those charts that vix gonna break to upside and stocks will fall? whats your prediction time frame that this will happen? implied volatility level and vix level are unrelated, correct? please elaborate
YES (I view monthly, weekly and daily with just one momentum indicator in the lower panel) - Monthly view is for large perspective, weekly is for timing the monthly breakout for such breakouts have power akin to rocket boosts - daily is used for day to day operations I called the start of CRASH July 17 TOP, breakdown July 25, 2014 but the Dow poked a hair above the top, invalidating my call. Timeframe for this to happen = ANYTIME NOW since July 17, 2014. http://www.elitetrader.com/et/index...ression-2-underway-as-of-july-25-2014.285762/ The VIX will shoot up like a rocked and blast past the latest VIX WAVE HIGH on Daily chart. Regarding your questions about implied volatility, go to the source but caveat: don't get too caught up in the mathematical derivations= keep it simple = Vix is a CROWD sentiment gauge, the sentiment scale extending from total optimism to total pessimism = the in-built structure of the CROWD's unconscious or reactive mind =VIX is a measure of the reactivity of the CROWD of animals known as Investors\Traders who is the opinion of AfterLos are no different than a herd of zebra or wildebeest, the keynote of said CROWD being that it operates as ONE = no individuality http://en.wikipedia.org/wiki/VIX
Vix daily chart showing the breakout levels in sequence as in engines firing one after another aka changing gears into cruising speed the white arrows represent the breakouts a-coming the major breakout marked in yellow is the KEY level - why? = TREND REVERSAL SIGNIFICANCE
>>>>>> The VIX will shoot up like a rocked and blast past the latest VIX WAVE HIGH on Daily chart <<<<< Q.E.D. = Done
October 11, 2014 Vix in action = waterfall in reverse with nice smooth curve as moving averages go from contraction format into a nice orderly cross(es) as they cross the 200 ema and curve ever so subtly upward at 61.8 degrees Curves of a beautiful woman come to mind Macd has exceeded previous wave macd top so Mommy is jiving along just as AfterLOS did a year ago in Soweto, S. Africa. God, do the Africans love AfterLos as they taught him to jive quite nicely Africa, God do I love her so!
Vix #1 lesson: AS I said before, low Vix = complacency = BEAR's master tool to draw in sheep, usually greedy and stupid, and almost always ignore the lessons of HISTORY by spouting, "its a new era" BEAR punishes such folk every damn time. Same-o, same-o, never deviates from the script. But this 2014 top in the Dow Jones produced a new type of complacency - one that is defiantly so to such an extent as to exclude ANY chance of the environs being anything otherwise As in, "The Plunge Protection Team always steps in" = a new twist from the 2008 era but exponentially carved into the wildebeest mind by a ray gun. At every previous top since 2000 these and similar cats came along with their FREE money buy, buy buy. BEAR normally licks his chops as the feast will be huge but this time in 2014 he let it run for quite a while so as to embolden these cats even more before dropping the F-bomb. Stupidity to the nth demonstrated here. They never notice that the lights can change in a heartbeat. http://www.elitetrader.com/et/index.php?posts/4036309/ -------------------------------------------------------------------------------
You seem to obsess about imaginary people and carry a fair bit of hate on various topics. This bull market was really easy to trade if you understand the nature of bull markets. Just buy in 2009 and understand the usual cycle is 4-5 years. It seems to me you probably missed the bull all along, have you matched the US index return from 2009-2014 or are you hoping for a crash to "validate" your terrible strategy ? Is this why you are so angry ? This was no "new era", it was almost a textbook bull market preceded by an overdone crash in 2008/2009. I noted this on here in 2010 and was slammed by numerous characters who were convinced we were crashing in 2010, 2011, 2012, even 2013. All those people lost the opportunity cost of some of the easiest money you could make on index based investments in our lifetime. And yes, the easy money phase is gone, so I'm flat and have been since last year.
+1. 10-20 % corrections will occur.. .that is the norm. but eventually with inflation, growth, 401K money.. they have to find a place and they will be re ploughed into the market.. in the FED we trust!!
>>>>>> This bull market was really easy to trade if you understand the nature of bull markets. Just buy in 2009 and understand the usual cycle is 4-5 years <<<<<<< Another ET billionaire tells off AfterLOS. Yawn! >>>>>>> are you hoping for a crash to "validate" your terrible strategy ? Is this why you are so angry? <<<<<<<< proof that he has not even considered gong SHORT = never saw the turn coming = YAWN = nobody at ET EVER does. Same-o, same-o >>>>>>> And yes, the easy money phase is gone, so I'm flat and have been since last year <<<<<< (1) Why have you been flat since last year if as you say its soooooooooo eeeeeeeeezzzzy to play a bullmarket? (2) The easiest money is on the turn, highest returns in short space of time, BEAR falls much faster than Bull rises = TP 101 Your Honor, sooner or later they put their foot in mouth but only AfterLOS catches the lie, everyone else buying the shite like its caviar Behold the rocket move on VIX by clicking the chart and seeing the rocket green line at right