Interpreting the VIX: When to Buy and Sell Your Stocks

Right now, the VIX is trending lower. This is important because if it continues in that direction - and into the mid to upper teens - you'll want to buy the VIX. Why?

Because each time the VIX has traded in the mid teens, it's represented a major opportunity to short the market, since that level has historically proved to be the bottom of the volatility range.

And that range - if we ignore only the most extreme bullish and bearish events as aberrations - is between 13 and 49.

~ At 13: This means investors are very complacent. You should buy the VIX and sell stocks.

~ At 49-Plus: This means investors are panicking. You should sell the VIX and buy stocks.

 

i think we are very close to this 49. but one point during the lekman bros,,,this VIX was 80 plus...so when we get there, just wait awhile, or maybe buy slowly. 25% BY 25%..