As you have obviously been in this business for like 2 or 3 weeks at most (judging from your uninformed Amazon put thread) you should probably still be aware that the shit has not even begun to hit the fan. Once this happens vol will pop. Lots to learn I guess...
Market completely, udderly collapses, and VIX up... 0.16%?!
- Thread starter SoyUnGanador
- Start date
There is absolutely nothing wrong with the market.
It goes wherever it wants to go.
The stock market is not getting killed.
The stock investors are getting killed.
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In early 2018, when the S&P dropped about 12% (but in a rapid fashion over a week or two), the VIX spiked briefly up to 50. The bottom line is it behaves very differently in different markets and is not a reliable indicator.
Major projection here. The VIX doesn't follow repeatable, obvious patterns like that. See my comment above.
https://seekingalpha.com/article/1233251-vix-what-is-it-what-does-it-mean-and-how-to-use-it
Key sentences:
- Derived from the prices of options premium in the S&P 500 index
- It is not representative of the actual volatility or what will happen
- The VIX below 20 means that the market is forecasting a rather healthy and low risk environment
- The VIX heads higher than 20, then fear is starting to enter into the market and it is forecasting a higher risk environment
IMV, the market is in denial... still expecting the Fed to do "something" to end this. The bulls have not yet acknowledged the bear.... unless the Fed pivots, the bulls will have to "toss in the towel".... then we'll see the real bear market.
