What is
VIX
?
The VIX is a real-time volatility index created by the Chicago Board Options Exchange (CBOE). This index was the first benchmark to quantify market expectations regarding volatility. However, the index is forward-looking, which means that it only shows the implied volatility of the S&P 500 (SPX) over the next 30 days.
Since the VIX reaches its highest levels when the stock market is more unstable, the media communication tend to refer to the VIX as an indicator of fear and in the sense that the VIX is a measure of the market perception (particularly of concern) such a description is correct.
The implied volatility normally increases when markets present turbulence or the economy decays. Conversely, if the prices of stocks are rising and not changes seem likely substantial, the VIX tends to fall or stay stable at the bottom of your scale. In other words, there is a negative correlation between the VIX and the stock performance. For example, in November 2008, a As stock prices rise dipped, the VIX hit a high historical of 80.86. in the winter of 2013, when the value of the shares rose, the VIX held at about 12 points.
WHAT DOES THE VIX MEASURE?
The VIX measures the expectations of volatility of the capital market based on the option prices. Instead of measuring volatility ârealizedâ or historical, the VIX projects volatility âimpliedâ or expectedâspecifically from the 30s future daysâby measuring changes in S&P 500 option prices.
Historically, when the VIX reaches 40 points or more, the S&P is at the end of its downward trend to make a range or rise, when the VIX reaches 40 points is when it could be said that we are already in recession and "when there is blood, it is because the sharks already attacked" possibly in 2023 we are facing a recession but it could end in a few months and in 2024 have a rise in the American indices as can be seen above.
REMEMBER "HISTORY DOESN'T REPEAT BUT IT RHYMES"
SPX
NDQ
DJI
Possibly the recession ends in the first half of 2023 when the FED lowers interest points to 0.25%
VIX
? The VIX is a real-time volatility index created by the Chicago Board Options Exchange (CBOE). This index was the first benchmark to quantify market expectations regarding volatility. However, the index is forward-looking, which means that it only shows the implied volatility of the S&P 500 (SPX) over the next 30 days.
Since the VIX reaches its highest levels when the stock market is more unstable, the media communication tend to refer to the VIX as an indicator of fear and in the sense that the VIX is a measure of the market perception (particularly of concern) such a description is correct.
The implied volatility normally increases when markets present turbulence or the economy decays. Conversely, if the prices of stocks are rising and not changes seem likely substantial, the VIX tends to fall or stay stable at the bottom of your scale. In other words, there is a negative correlation between the VIX and the stock performance. For example, in November 2008, a As stock prices rise dipped, the VIX hit a high historical of 80.86. in the winter of 2013, when the value of the shares rose, the VIX held at about 12 points.
WHAT DOES THE VIX MEASURE?
The VIX measures the expectations of volatility of the capital market based on the option prices. Instead of measuring volatility ârealizedâ or historical, the VIX projects volatility âimpliedâ or expectedâspecifically from the 30s future daysâby measuring changes in S&P 500 option prices.
Historically, when the VIX reaches 40 points or more, the S&P is at the end of its downward trend to make a range or rise, when the VIX reaches 40 points is when it could be said that we are already in recession and "when there is blood, it is because the sharks already attacked" possibly in 2023 we are facing a recession but it could end in a few months and in 2024 have a rise in the American indices as can be seen above.
REMEMBER "HISTORY DOESN'T REPEAT BUT IT RHYMES"
SPX
NDQ
DJI
Possibly the recession ends in the first half of 2023 when the FED lowers interest points to 0.25%
Edrul Alejandro.
Telegram : t.me/EdrAlejo
Instagram : www.instagram.com/edrul_alejandro/
Link : linktr.ee/Edrul_Alejandro_
Telegram : t.me/EdrAlejo
Instagram : www.instagram.com/edrul_alejandro/
Link : linktr.ee/Edrul_Alejandro_
