VXX

Ocean Waves

Volatility Sleeps, Risk Doesn’t

Higher stock prices (NYSEARCA:DIA) have kept a lid on stock market volatility. The S&P 500 volatility index (ChicagoOptions:^VIX), also known as the “fear index,” has now fallen around 17% over the past month and is back below its 200-day moving average. Does the stock market’s general lack of fear mean that volatility has reached a permanently low …

Volatility Sleeps, Risk Doesn’t Read More »

How Long Will Stock Market Volatility Stay Subdued?

Reader poll: What’s among the most depressed asset classes in the world? If you answered “volatility” you’re right on! The problem for volatility bulls (NYSEARCA:VXX) is we haven’t had a sustained level of stock market volatility.  That hardly means a lack of opportunities to profit from short-term volatility exist. The opposite in fact is true. The chart …

How Long Will Stock Market Volatility Stay Subdued? Read More »

Race Cars 2

Psst…Volatility is Still Outperforming the S&P 500

One week after the VIX (ChicagoOptions:^VIX) spiked to 30, Wall Street’s Kool-Aid drunks are back to saying that stock market volatility is over. It’s done. And it’s never returning. The Santa Claus rally in small cap stocks (NYSEARCA:IWM) and technology shares (NYSEARCA:XLK) smack dab in the middle of October, now has Sand Hill road (Silicon …

Psst…Volatility is Still Outperforming the S&P 500 Read More »

Ocean Waves

Is Swelling Volatility on Modest Declines Bullish?

It’s been three years since the last significant stock market decline. The 19% slide from April 2011 to October 2011 stoked fear, but still missed the official definition of 20% bear market. This time around, it’s still too early to know whether the modest pullback in the S&P 500 (SNP:^GSPC) that began several months ago …

Is Swelling Volatility on Modest Declines Bullish? Read More »

Ocean Waves

Is Stock Market Volatility Increasing?

Is stock market volatility rising or falling? For most of this year, stock market volatility has actually outperformed the stock market itself. But for whatever reason, it’s an unpopular narrative that’s been and continues to be ignored by the mainstream media. The chart below illustrates the relationship between stocks and volatility in 2014. You’ll notice how the S&P …

Is Stock Market Volatility Increasing? Read More »

Fireworks 1

Ready for the Next Surge in Volatility?

Is another surge in stock market fear and volatility ahead? Will you be ready when it happens? “Public psychology is the most important single factor in shaping security markets,” said Gerald Loeb. Loeb was right and that’s why we make it a regular habit at ETFguide to track movements and trading opportunities in the CBOE …

Ready for the Next Surge in Volatility? Read More »

Does the Sleeping Giant (VIX) Have More Upside?

Like a sleeping giant, stock market volatility can hibernate, but it never goes away. Right now, the giant is showing signs of awakening and whether the beast completely tramples the city is yet to be determined. Although the S&P 500 (^GSPC) hit all-time highs near 1,859 last week, a number of flashing indicators we’ve written …

Does the Sleeping Giant (VIX) Have More Upside? Read More »