|From: TraderJohn (Rep: 1642)||Date: 10/19/2012 15:12|
|Forum: Wall Street Pit - Msg #2324371 - List VIX msgs ||Thread #673466458 (Rec: 0) |
|If there is one single indicator to signal market tops and bottoms this is it. The charts scream sell the market everytime the VIX hits 14. |
An even better way to play this is by using divergance between price and volatility. VIX fails to make new low while price makes new high.
8/17 VIX hits all time low at 13.30 with DJIA at 13,275.
9/14 higher low on VIX 13.51, higher high on DJIA @ 13,593.
10/5 higher low on VIX 13.67, higher high on DJIA @ 13,610
As the DOW grinds up the VIX should make lower lows. Not so, divergance signals topping action.
Disclaimer: Stocks mentioned here carry my own personal opinion, and are posted only for the purposes of research and due dilligence. Please do your own research or consult a registed advisor before pushing the buy/sell button.
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