The Traderszone Network

Published in TZ Latest News 2 August, 2014 by The TZ Newswire Staff

VIX Jumps to Four-Month High

As usually happens when stocks weaken, the CBOE Volatility (VIX) Index jumped sharply this week to the highest level since April. The VIX (also called the “fear gauge”) has climbed 47% since the start of July. That means that traders are buying “option” insurance against a possible downturn in stocks. The red bars in Chart 10 show that the recent upturn in the VIX is the biggest since January. That’s consistent with a short-term correction. A move above its spring highs, however, (18.22 and 17.85) would be more cause for concern.

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