Monday, July 16, 2007

Risk Permium

When looking at the volatility index , there is a interesting pattern that occurs. The VIX which known as the fear and grid indicator is telling us that although market is advancing , the fear from crash is here. how can we know that? By looking at the index - you can see the market makes new highs but the VIX no new lows. So pay attention all investors and traders.


2 comments:

Anonymous said...

Are you looking to go short today with the VIX so low?

indextrading said...

not yet. I believe the sell signal will be generayed in a day or two.