Warning System

Volatility is a key factor when trading stocks. It measures the degree of change in price movement.

The VIX ticker measures the volatility of the overall stock market, and the VVIX ticker measures the volatility of the VIX.

I use a ratio of the VVIX/VIX, and am particularly interested in the steepness of its trend. The green/red indicator signals bullish/bearish conditions for the stock market. This tells me how aggressive or cautious I should be in my portfolio.

Unfortunately, there are no similar volatility indexes covering the sector ETFs, so I've implemented a custom solution known by many traders as the VIX-Fix. This allows me to generate scales of local volatility for every stock I model.