July 30, 2017
Market Volatility
^VIV and NASDAQ Composite Index Benchmarking
See chart for more, picture worth a thousand words.
When there is a spike in VIX, it means there is a probability of a global sell off. VIX is a forward looking. It is calculated from both calls and puts, and is a widely used measure of market risk, often referred to as the “investor fear gauge.”
So, sometime it can be worry when market become fearless.
Currently, VIX is making a all time low, and index like NASDAQ Composite is making a all time high.
July 28, 2017 Volatility Index and NASDAQ Composite Benchmarking – Monthly Chart
CBOE Volatility Index Monthly Chart Since 1992
How many of the major recession you can see from the chart here? There were total six recession, or major recession since 1970. We have marked three of the recent one. See chart for more.
Enjoy learning here.
July 28, 2017 Volatility Index Monthly Chart Since 1992
So, What’s Next?
So, what is all these meant to a trader? As a trader we look for buy or sell. So, with the above two charts, okay we understand the market confident or fears, then?
See our next posting for some strategy and thinking. See you.
Moses
AmiBrokerAcademy.com
Disclaimer
The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.
These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.