Discussion in 'Trading' started by ghettotrade, Jan 7, 2011.
Whats the deal how come the vix is down so much if the markets are going down?
yesterday the market was very anxious (high VIX) about the coming job report. today after the news was ejaculation the market calmed down (VIX down). later in the day when stocks started to drop significantly the market started to get anxious again (VIX above yesterday)
because its not reliable
VIX no longer the "VIX" of 1999-2000 or even 2001-2004. VIX is no longer much of an indicator presently.
VIX is "FEAR" indication or "AHHH" indication. However, the volume is light and almost half of the volume traded is "HFTs", with very little emotion.
You're having data vendor problems.
VIX is DOWN and markets are UP (not down) on the daily chart.
Yet, even if you're talking about intraday...the VIX and markets are inverted of each other.
However, if you're talking about charts less than 1min of tick charts for invert correlation...I wouldn't put too much weight on such.
$VIX is an excellent for telling when markets are range bound...good time to lower the position size or stay on the sidelines. Yet, I prefer using the VXX instead of the $VIX because too many data vendors have problems with accurate data for the $VIX for some odd reason (e.g. esignal and Quote.com).
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