Home > market, stock, ta, technical analysis > Fear index is at major support

Fear index is at major support

Fear index also known as volatility index is currently at the major support with divergence shown at RSI and Stochastic. For more details you can look at this wiki post.

Apparently, this can also be used for long term investment. Meaning buy only when people are fearful, which is when VIX is is very high. Just like Warren Buffet. And sell when people are hopeful, when VIX is very low. Interestingly, the chart pattern combined with my set of indicators is showing that maket is being too hopeful.

Maybe the correction ain’t over. A magazine is predicting that the correction might come during March to June and the new bull run will only start in 2012.

It’s time to tighten stop loss to prepare for the worse.

– The Trader –

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  1. March 23, 2010 at 7:49 am

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