The VIX & The Tides

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The CBOE Volatility Index (VIX) is a market index that represents the market's expectation of 30-day forward-looking volatility. A high VIX high volatility and a low VIX = low volatility. In 10KTrades terminology, VIX can be illustrated by "wind speed (knots)" or by the types of Tides.

For some perspective, back in December when the market was very volatile, the VIX rose to 36.20. Since then the markets have been much calmer and the VIX has been around 13.

When the VIX is high expect volatility (high winds and turbulent seas) and trade accordingly. Likewise a low VIX might offer a little more stability so adjust your Captain's Log accordingly.

Trading Tide Levels (at the time of this post):
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This is for informational purposes only and the information provided does not encompass all possible or probable outcomes and nothing posted here is an indication of future results. Nothing in this blog is a guarantee or promise of future investment returns and investing in stocks or bonds carries risks including losing your entire investment. I do not recommend, advocate or endorse any third-party links, resources or advertisements of any kind. Any investment decisions are recommended to be in conjunction with a Certified Financial Planner, a comprehensive and personal financial plan and all other components that make up your own financial situation.

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