| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
VIX
No, this is not a symbol for some Latin number. The Wall Street mavens talk about this market timing device as if they knew how to use it to determine which way the stock market is going - up or down. It is pretty obvious that brokers, analysts and financial planners have not learned the language. What does it mean and can it be used to predict market moves? The VIX is actually a measure of volatility for those who buy and sell stock options think about the market. To make it simple you can find it displayed as a chart on the Internet at www.cboe.com. It measures the volatility of the market calculated by taking a weighted moving average of the implied volatility from eight puts and calls on the S&P 100 index. I hope I didn't lose you here. Stay with me a moment and I'll try to make it simple. Every trader is looking for the Holy Grail indicator and recently the VIX seems to be it. Of course, like all indicators it will work until too many use it and then it will fail taking with it the spoils of the market - their life savings. It seems relatively simple to use and therefore attracts novices as well as professionals. When the indicator goes below 30 it would be a time to be short the general market such as the DOW, the S&P or the Nasdaq. When the numbers go above 45, which is supposed to show panic of investors, it is a time to buy. It is an inverse indicator. The lower the number the more complacency of the little investor - SELL; the higher the number the greater panic - BUY. Maybe it has become too simple because there is a sing/song that goes "When VIX is high it's time to buy, when VIX is low its time to go". If it were only that simple. Every timing device has its shortcomings. With the VIX the numbers can remain in excessive high and low levels for prolonged periods and therefore cause the trader to experience losses before the desired market movement occurs.Like all other timing methods it is best when combined with other signals such as the 50-day moving average, P/E ratios and other devices. Having been a trader for many years I can assure there is no Holy Grail indicator. The VIX is but one letter in the alphabet of market language. You cannot be successful with one syllable. You must take the time to learn the entire vocabulary. Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know. 1-888-345-7870; al@mutualfundstrategy.com
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Starbucks Stock is Up Starbucks earnings are up again and so is their stock slightly. It appears they are exporting America's weakness to caffeine and sugar around the world. Rebalance And Diversify The stock market has not been very kind to your investments lately. Your broker knows this so you may have received a call from him suggesting it is time to 'rebalance and diversify' your portfolio. China Syndrome There has been great condemnation recently because China has been selling its goods on the world market at prices below what other countries, especially the U.S. Laws and Efficiencies and Theories of Diminishing Returns The basis of diminishing return discussions surround such simple notions; that when you have a very fast aircraft, you also have coefficients of drag issues. When you are building a quarter mile car and want to go faster you must realize that for every tenth of a second you need to lose 100 lbs. Dollar Cost Averaging Dollar cost averaging is one of the most popular ideas in the investment community. Everyone seems to like it and it has become a watchword among stock and mutual fund brokers. Attitude Is [Almost] Everything I often play a little game with myself when I have to go shopping; to the post office or on other errands.Sometimes I will just go about my business and make little comment or eye contact with the person serving me. Stocks & Oil, Sat Jun 18th, 2005 Both the stock market and oil prices rallied recently, which seems to be a paradox, because high oil prices are negative for earnings (i.e. It Cant Be Done Wouldn't it be nice if you were only in the stock market when it was going up and have everything transferred to cash while it is going down? It is called 'market timing' and your broker or financial planner will tell you "it can't be done". What that person just told you is he doesn't know how to do it. Getting Even I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope". NASDAQ 800? In November of 2000 when the NASDAQ was trading at 3000 I wrote in this column that the NASDAQ Index would fall to 1500 and I got lots of heat for saying it. Microsoft had fallen from $129 to $60 per share. Take The Time You must take the time once a month to review your investment portfolio. It won't take long - less than one hour, maybe 15 minutes. Why This Bear? People are constantly asking me why is the stock market going down. What is causing this bear market? It is relatively simple so don't ask an economist. Long Term Investing In his wonderful book, 'Multiple Streams of Income', best selling author Robert Allen advises Investors to divide their Stock Market investment and trading capital into three portions -50% invested long term (forever) in an Index Fund, 30% invested in Accelerated Stock strategies and 20% in options or high risk investment strategies.This article will discuss long term investing and how technical analysis can alert us to points in time when it is prudent to take profits and exit the Stock market. Understanding the Bulls and the Bears If you've ever flipped on the television to CNN Financial or paged through the finance section of your local newspaper, you may have seen or heard references made to "the bulls and the bears." If you didn't know what was meant by those terms, you're about to find out. Low Expense Ratio One of the big advertising kicks today from mutual funds is to tell how low their expense ratio is and that you will make a great deal more money if you buy and hold with them. Partly true, but that is not the whole story. How To Make, And Keep, Money Trading Stocks If you are serious about making and keeping money by trading stocks, then there are three things you need to do, and do well.Money managementOrdersTrading systemMoney managementMoney management comes first. Catnip of the Stock Market I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. Forces that Move Stock Prices Among the largest forces that affect stock prices are inflation, interest rates, bonds, commodities and currencies. At times the stock market suddenly reverses itself followed typically by published explanations phrased to suggest that the writer's keen observation allowed him to predict the market turn. Trading For A Living How many times have you said to yourself, "I'd like to quit this job and just make a living trading in the stock market"? Well, maybe you can, BUT.. Mindset In 1960 an engineer working for a watch company in Switzerland discovered that a small crystal would vibrate at a constant rate. He found this was so accurate that it could be used to calibrate time so he took it to company management and said it would make an entirely new kind of watch that had no springs and no gears.
|
Sponsors: Chicago Paving Contractor | Remanufactured VTL | Religious Statues | Search Engine Specialist
