A reading above 1.20 shows extreme bearishness among speculators and can indicate a good time to buy stocks for the short-term. A reading below 0.80 shows extreme bullishness and could indicate a good time to sell.
Volatility finally came back to the stock market last week. And, it looks like it’s going to stick around for a bit. It took two buy signals before stocks rallied in February. And, it took four VIX buy signals before the market finally bottomed in March and the recent “greatest rally of all time” got started. Traders should probably wait for at least a second VIX...
