VIX: You ll be hearing that Wall Street adage a lot in coming weeks, but should you follow it? Its important to get the right answer, since stock exchange trading volume invariably declines following Memorial Day and doesnt pick up in earnest until after Labor Day. , according to Market Watch. Many traders interpret the VIX in a contrarian way: They consider it bearish when the markets are dull and the VIX is low, while high VIX levels are considered bullish. If they re right, then the Wall Street adage is wrong and you should be prepared to sell a dull market short. Shutterstock/Burachet N.C. MarketWatch Dont sell a dull market short. To gain insight, I focused on the stock markets behavior following low and high readings of the CBOEs Volatility Index, or VIX /quotes/zigman/2766221/realtime VIX -8.10% . This indexs level at any given time reflects traders expectations about stock market volatility over the subsequent 30 days.
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