But because of how they’re Algorithmic trading strategist constructed, even the best volatility ETFs tend to decline in value over time, even if they do spike higher in times of intense volatility. That much is understood by most investors, but what exactly is volatility and how is it measured for the overall stock market? You may have seen references to something called the VIX, an index that measures volatility, during times of extreme financial stress.
Stock Market News for Feb 12, 2025
The big players today are XLB, Consumer Staples (XLP) and Communication Services (XLC), which are all moving higher. Former hedge fund manager Chris Pulver and I are going live to reveal a breakthrough method for spotting what could be market-moving news — before it hits the mainstream media. The VIX — aka the “fear gauge” — has been all over the place lately, but that’s nothing new. For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages. As the Federal Reserve is expected to cut interest rates, investors are seeking defensive strategies, and the Utilities Select Sector SPDR Fund (XLU) stands out as a reliable option, offering stability,…
Stock Market News for Feb 5, 2025
- The Barchart Technical Opinion widget shows you today’s overall Barchart Opinion with general information on how to interpret the short and longer term signals.
- New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares.
- Most of the time, it falls all the way back to 15, but with the current uncertainty around tariffs and the economy, we may only see a drop to 16 or 17 before it bounces again.
- One tool analysts use to measure this fear is the VIX, often called the “Fear Index,” published by the Chicago Board Options Exchange (CBOE).
- Former hedge fund manager Chris Pulver and I are going live to reveal a breakthrough method for spotting what could be market-moving news — before it hits the mainstream media.
- For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages.
Instead of getting shaken out every time the VIX jumps, use those moves to your advantage. As long as uncertainty lingers — whether from trade negotiations, earnings or economic data — these VIX spikes will keep happening. That means you can’t get caught off guard when the next one comes. Lately, when the VIX has breached 20, it’s only been an intraday move before settling lower.
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Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. The VIX, which was first introduced in 1993, is sometimes called the “fear index” because it can be used by traders and investors to gauge market sentiment and see how fearful, or uncertain, the market is. The VIX typically spikes during or in anticipation of a stock market correction.
If we get another spike to 20, odds are high that we’ll see it come back down https://www.forex-reviews.org/ again. But that doesn’t mean it’s time to short volatility aggressively. What’s more important is understanding the pattern we’ve been seeing — every time the VIX spikes to 20 it pulls right back down. That’s happened four or five times now, and it’s a signal traders need to pay attention to.
Stock Market News for Feb 11, 2025
- As long as prices remain above the average there is strength in the market.
- When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener.
- From a long-term investment point of view, the value of technical analysis may be diminishing, as indicated by the end of January monthly charts.
- For example, OTM put options help protect against downside risk and become more expensive when investors anticipate a decline in the S&P 500.
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- This isn’t something that will make sense for most investors who are working to meet a long-term goal such as saving for retirement.
- As the Federal Reserve is expected to cut interest rates, investors are seeking defensive strategies, and the Utilities Select Sector SPDR Fund (XLU) stands out as a reliable option, offering stability,…
We are an independent, advertising-supported comparison service. Volatility is a statistical measure based on how much an asset’s price moves in either direction and is often used to measure the riskiness of an asset or security. In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. The Barchart Technical Opinion widget shows you today’s overall Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.
Stock Market News for Feb 12, 2025
New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares. It should be noted that these are rough guidelines ⏤ unexpected events can throw a wrench into markets and a low VIX level today could be followed by a period of extreme volatility if circumstances change. The U.S. stock market hit speed bumps in early August and early September. The August selloff briefly lifted the volatility index to the third-highest level this century. In times of market turmoil, fear and uncertainty take center stage. One tool analysts use to measure this fear is the VIX, often called the “Fear Index,” published by the Chicago Board Options Exchange (CBOE).
VIX, or volatility index, is a forward-looking measure of fusion markets review expected future volatility in the stock market. It captures these expectations using prices of “out of the money” (OTM) put and call options on the S&P 500 index. These options are particularly useful in capturing future expectations of extreme price movements. For example, OTM put options help protect against downside risk and become more expensive when investors anticipate a decline in the S&P 500.
New delayed trade updates are updated on the page as indicated by a “flash”. Volatility has tanked since the election, with the VIX Index closing at 14.02 yesterday. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener. In markets like this, the best approach is to structure trades that can handle big swings. Spreads, straddles and well-placed hedges can help smooth out the ride.