For the past few months the volatility indexes have taken a hard hit. In the last few days their has been volatility in the volatility indexes themselves. The VIX has foreshadowed some major events in the past. Is the VIX foreshadowing something now? The answer to that question is simple, maybe. The VIX has broken its downward trend and done so on a high volume. The volatility indexes may not be heading through the roof, but were dramatically oversold, meaning their is still lots of room to the upside. With macro and geopolitical fears rampant (watch the evening news) the chances of something dramatic and negative in the future is not unheard of. At these levels the volatility indexes may be a better place to be then not to be.
“Continuous effort – not strength or intelligence – is the key to unlocking our potential.” -Winston Churchill