Fear Levels At Four Year Highs Says Market Timer Frank Kollar
August 10, 2007 (FinancialWire) (By Frank Kollar)
The CBOE Volatility Index (VIX), an excellent measure of fear in the marketplace, is at four-year highs. Volatility is at levels seldom seen in the stock market. What happens next?
We have personally read the analyses of several advisors telling their clients to buy now. Maybe they are right, but maybe they are wrong. Yes the Volatility Index is at four-year highs, but during the years of 2001-2003 it was typically twice as high. Just because prices are low does not mean they cannot go lower.
It is time to sit on the sidelines unless you are a professional, and from the news reports, many of them are taking huge losses too. There will be a clear signal when the market has reached a confirmed bottom. We are not likely there yet.
Follow your strategy and adhere to your money management rules to protect capital. If you do not have money management rules, give FibTimer.com (http://www.fibtimer.com) a call. The surest way to lose money in the stock market is to trade without a plan.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
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