4.10.12 VIX – The fear gauge

The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge“. This shows the market’s expectation of 30-day volatility.  Read morehttp://www.investopedia.com/terms/v/vix.asp#ixzz1rfHthKyX

 

“The VIX movements reflect the increased fear off the recent performance of the S&P 500, the poor unemployment number, and rekindling of fears out of Europe focused on Spain and Italy,” Nelson Saiers, who oversees about $650 million as chief investment officer at Alphabet Management LLC in New York, said in an interview.

“It’s a significant string of increases, but there’s no panic in the volatility market,” said Ben Londergan, chief executive officer of Group One Trading LP, the Chicago-based primary market maker for VIX options. “This is more likely an increase from a low level in the VIX combined with a healthy and legitimate sell-off in equities.”

Read more: Bloomberg

 

Just be careful with your trades😉

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