20.7 C
New York
Friday, September 24, 2021
HomeStock marketUS stock market volatility index and fear in stock trading

US stock market volatility index and fear in stock trading

US stock market volatility

“The CBOE Volatility Index (VIX) is a measure of expected price fluctuations in the S&P 500 Index options over the next 30 days. The VIX, often termed as the “fear index,” is calculated in real time by the Chicago Board Options Exchange (CBOE).” Source: Investopedia

US stock market
US stock market

Stocks and VIX index

5-day CBOE Volatility Index chart for the US stock market
5-day CBOE Volatility Index chart for the US stock market

Source: MarketWatch.com

Panic and fear create opportunities for stocks to buy, stocks to sell, stock trading. The increased volatility for the CBOE Volatility Index (VIX) this week may present a lot of stock trading opportunities the following week. Stocks have declined from their highs, but caution is required as buying the dip is not applicable for all stocks, it is only suitable for stocks with good fundamentals and good financial performance, at reasonable levels now. It will be not logical again if a stock market rally occurs next week for stocks with poor fundamentals to rise again. But trading differs from investing, and speculation will be always present in stock trading, stock investing.


RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular