The VIX closed @ 25.92 july contracts $25.57 august '' $24.97 sept " $24.74 oct " $24.55 Does it mean the bottom is near? I was thinking about buying some july contracts as a hedge but this does not look very good. Should I buy aug?
The VIX is best used as a "panic" indicator... and that's relative to recent values. Currently 35-40 would be such a value. Until then, it means nothing.. IMV One other possibility... if it dropped back to the level of the May/June highs in the market... could play that as a "recent extreme". (A friend of mine charts the VIX.... trendlines, channels, triangles, etc. I think he's daft. )
Everyone is saying the VIX needs to be somewhere near 35+ to signal somewhat of a bottom, Im surprised its not even near 30 at this point, I think this time the VIX may not need to see 35+ to signal a short term bottom.
I really think the markets are ready for a 10-15% ONE day drop. I think the market is going sub 11k sometime in the next week followed by a dramatic drop below 10k where I think a bottom will be made.
Dennis Neal on cnbc just said BUY BUY BUY, dont worry he said the same thing when the dow was above 13k... guy is a joke......