Sunday, April 13, 2008

Dow And VIX Update

On Friday's trading session, the Dow Industrial Average closed down 256.56 points at 12325.42. General Electric shocked investors with lower-than expected earnings and a profit warning that wiped $46.9 billion off its value and sent the overall market slumping.

The VIX closed at 23.46.




If you look at the VIX chart, you can draw a trend line ("Blue Line") connecting the bottom formed on Oct 07, Nov 07 and Apr 08 respectively. These 3 points marked the beginning of significant drop in the Dow Industrial Average ("Red Line").


The VIX is not painting a good picture for trading next week. So do trade with care.
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2 comments:

Mike Dirnt said...

hi,

VIX is volatility index right? may i know which charting software you use? cant seem to find from stockcharts.

April 20, 2008 at 9:50 PM
Stock Student said...

You can find the value of VIX in yahoo finance portal. The symbol is ^VIX. I am using metastock to plot the chart.

April 23, 2008 at 4:04 PM

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