VIX - Volatility Index

[vindikation]

Do you check out the Volatility Index (VIX) (http://finance.yahoo.com/q?s=^VIX&d=t) to get an overall feel of 30 day market futures before purchasing a stock?

[Sniper]

VIX is a representation of volatility in the market... constructed using the implied volatility of certain index options... it has nothing to do with futures.

[vindikation]

Sorry, I meant a feel of the market over the next (future) 30 days (not futures themselves). I apologize, I'm still learning all of these new terms.

So do you look at the VIX for any kind of input in a decision on when to buy a stock?

[Sniper]

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I meant a feel of the market over the next (future) 30 days

[/ QUOTE ]

That would be called a crystal ball /images/graemlins/wink.gif

[ QUOTE ]
So do you look at the VIX for any kind of input in a decision on when to buy a stock?

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Some people use VIX as a market fear indicator...

As in, the 2+2 Fear index went thru the roof this week, things can only get better from here!

The VIX is a single indicator, nice to know where it is, not highy useful, unless you've designed a system around it /images/graemlins/smile.gif

[CD56]

IIRC the VIX has a fairly consistent inverse relationship with the SP500, has anyone ever attempted a system for trading the SP500 using the VIX?