need help on the VIX

A

AnonTrader

im a newcomer on the VIX...is it reliable in terms of buy and sell signals?...what levels should i expect a reversal?....any articles or info will be helpful.....thanks
 
Originally posted by AnonTrader
im a newcomer on the VIX...is it reliable in terms of buy and sell signals?...what levels should i expect a reversal?....any articles or info will be helpful.....thanks
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VIX is simply the "implied" volatility index of the OEX options. It is best used to judge "sentiment" about overall market movements (in either direction). Do an "atomica" search for VIX and you will find more information.
 
no it isnt reliable.it is only good for one thing realy.it is a fear indicator.so if you see spkies to over 30+ it is showing extreme fear and may be time to think about buying.other than that isnt too usefull.
 
Vhehn, respectfully I must disagree. VIX, with the proper system, is very effective. I shorted the SPY's at 114.9 on a Larry Connor's (Tradingmarkets.com) reversal Thurs afternoon and covered this morning for a little over a dollar. You're supposed to hold for 2-3 days, but being that I'm a scalper, over the long weekend was long enough for me.
Anontrader, PM me if you want help with VIX reversals, but I'll go over the basic Connors Reversal. THe VIX Daily chart must make a 5 day low, then close higher than it opened, that's it. With about 15 minutes left to go in the day take a look at the VIX daily and if the criteria is met, take your position. If the VIX makes a 5 day low then closes higher than it opens, you go short, and vice versa. VIX makes a 5 day high, then closes lower than it opened, go long. Look at the VIX on thurs. actually never mind, I'll attach a chart.
 

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Originally posted by vhehn
shorting just because vix is low isnt very good stradgey it can stay low a long time.
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I agree...since we have traded the OEX for decades now, and know that the floor traders never (ever) bother with the charts, we would be buying a low VIX, and selling a high VIX...this is basic to all options trading. We have historically bought under the historical average (12-15, believe it or not) and sold above 25 or so. Watch out for terms like "key reversals" (not picking on anyone in particular)...since they are often misunderstood and not really "key" at all (merely "speed bumps" in a trend).

That's all...good luck
 
Obviously it's been low, lower, then even lower all month. Go back and read my previous post and apply the rules to the Daily chart. The 5th day is a lower low and it closes higher than it opened, go short, that's it. It was purely a system trade that worked perfectly.
 
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