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.
at
Labels:

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

Post a Comment

Subscribe to: Post Comments (Atom)

STI Sideway To Bearish Tone

US market had a bad closing last night.  Dow plunged by 243 points.  It seems like we are seeing more volatility recently.  With earnings...

  • Two-bar Breakout System (2BB)
    The 2 bar breakout system is designed to capture short term trends by going long or short depending on the pattern formed by the 2 most rece...
  • Trend Score
    This is a trend indicator that was derived by by Tuschar Chande. It is a method of rating the trend by comparing the current day’s close to ...
  • The Impulse System
    This system has been covered in a number of books by Dr Alexander Elder. From the book “Entries and Exits, Visit To Sixteen Trading Rooms”, ...