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The VIX has “little or no predictive value” as a market timing tool, according to...

Wednesday, March 17, 2010, 3:35 PM ET
The VIX has “little or no predictive value” as a market timing tool, according to Laszlo Birinyi. “The VIX is a coincidental indicator. It details, perhaps better than other measures, the volatility of the market today but not tomorrow or the day after.”

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This news story has 3 comments:

elliotz Comments (251)

Is this news? I did not know there are traders out there who use the VIIX as a predictive indicator.

17 Mar 2010, 03:45 PM Reply Like

Swass Comments (415)

I never understood why people don't think the VIX is a good indicator. I find it an excellent indicator that shows pretty clear signals in combination with other things.

17 Mar 2010, 04:51 PM Reply Like

liuyunlang Comments (3)

higher option price gets higher implied volatility, according to BS function, and higher option price can reflects the investors, mostly educated investors, are using derivatives to hedge against future volatility, so I think it has some predicting value for us.

17 Mar 2010, 09:48 PM Reply Like

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