vix

Use VXO to continue tracking the original VIX.

Lawrence

Quote from Son of a Gann:

vix is calculated differently now, it used to follow S&P 100 and now it follows S&P 500 so be careful.
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While that's correct, the new VIX, which has been pointed out is calculated differently and is based on the SPX rather than the OEX, actually correlates pretty well with the old VIX (though it does skew slightly lower). Given that correlation, it should continue to work as a contrary sentiment indicator (that is, to the extent the VIX still "works" for such purposes, which is in some doubt). Still, I keep both the new VIX and the VXO on my screen. For more detail, the CBOE has a whitepaper and maintains historical data for both the new and old VIX on its website.
 
I just realized, is your handle a play on "Hello Dolly" ?

nitro
Quote from Hello_Dollars:

While that's correct, the new VIX, which has been pointed out is calculated differently and is based on the SPX rather than the OEX, actually correlates pretty well with the old VIX (though it does skew slightly lower). Given that correlation, it should continue to work as a contrary sentiment indicator (that is, to the extent the VIX still "works" for such purposes, which is in some doubt). Still, I keep both the new VIX and the VXO on my screen. For more detail, the CBOE has a whitepaper and maintains historical data for both the new and old VIX on its website.
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MacMillan is saying that VIX isn't necessarily what it use to be. The current readings, while seemingly are quite low, are still higher than actual market volatility. So don't look for a collapse just yet according to him. VIX could go lower still. Actual market vol =around 11
 
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