VIX on the Rise


Markets opened up on the extreme downside on Tuesday, which was a day earlier than I expected, nevertheless, this is the May that I have been warning about. Clearly, investors have some concerns as the market has almost hit the -300 point mark for the Dow and is looking to close with the largest one day drop we have seen for a while.

Moving the opposite of stocks today is the VIX level. VIX (the S&P Volatility Index) is currently up 25%, which is an extremely large one day increase. Historically, stocks tend to move the opposite direction the VIX graph does. We saw record setting VIX levels during February of 2009, when the market was at its lowest. Graph trending does not look good for markets at this point and start to look in options for some serious returns, as risk premiums tend to increase with the VIX.

1 comments:

  1. QUALITY STOCKS UNDER 5 DOLLARS Says:

    The markets always been unstable.