April 2, 2013

VIX bumping along a bottom

This is as good as it gets. Anticipated volatility for the equity market is near all time lows. Is this a reason for contrarian pessimisim? Perhaps not. Looking at the following chart shows that the time to get down on the markets is when the VIX is rising. In particular, a rise above 20 could be used as a sell signal.
Take this with a grain of salt.