Author: shyam

Technical Analysis on VIX – Does it make sense?

You can view a chart of the VIX just as you can for any stock or index. Just go to the VIX page, add some moving averages, maybe even Bollinger Bands and RSI indicators and you are on your way. However, just because you can chart the VIX just like a stock, doesn’t mean you should actually read the chart just like a stock.

India VIX analysis

Charts for stocks and indices actually represent buying and selling over specific timeframes. Stocks gap up and down. Gaps get filled. Old resistance points can become new support levels, etc. However, VIX is not a stock. India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. Hence, price points for the VIX doesn’t correspond to potential profits and losses of actual trades based on those levels. Support and resistance and trend lines and momentum effects all depend on the existence of buyers and sellers in the asset being analyzed. But you can’t trade VIX directly, so the VIX can never find “support” because no one previously bought VIX “shares” at that price level. VIX is, at best, an indicator of market expectation of volatility.

However, there are a few useful analysis you could run on VIX, given its tendency towards mean-reversion. Bollinger Bands and moving averages could help you gauge the band within which VIX is oscillating. Longer-term charts could help surface seasonal patterns. StockViz India VIX Charts are another tool in the arsenal for investors to help them make better decisions.

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Santa ♥ StockViz

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Santa Claus, aka Saint Nicholas, is a figure with legendary, mythical,historical and folkloric origins who, in many western cultures, is said to bring gifts to the homes of the good children during the late evening and overnight hours of Christmas Eve, December 24.

Given that overall population grew from 300,000,000 in 1 A.D. to 6,215,000,000 in 2011, that’s a lot of gifts to be bought even though the proportion of good children showed a markedly negative trend during the same period.

How does Santa, with no known source of income and subsisting on a one-in-a-year binge of milk and cookies, afford all those gifts?

Santa must be following our term-specific algorithmically generated equity and option ideas to turn his meager income into a well of wealth.

Santa ♥ StockViz

Gift someone you love a StockViz Demat account today!

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Buffalo Bill ♥ StockViz

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Buffalo Bill Cody rode on the Pony Express at the age of 14, fought in the American Civil War, served as a scout for the Army… and filed for bankruptcy.

Buffalo Bill as a very successful showman. In 1883 he organized his first Wild West show. He was in a show with real Cowboys and Indians. Buffalo Bill’s Wild West show was a successful show for over 30 years. Over the years the show prospered.

But eventually competition, the need to outspend that competition, and dwindling returns from a public tired of his style of entertainment forced him to merge with his major rival, Pawnee Bill’s Historic Far West and Great Far East Show, in 1909. But the combined show continued to run up debts and was closed by bankruptcy in 1915.

If Buffalo Bill were alive today, he would probably consider us a bunch of pansies, sitting behind workstations all day, punching away at the keyboard. But we are sure he would love us for our decidedly un-showman-like, unbiased and bland advice to quit when your trailing stop loss is triggered!
How are you protecting your profits?

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Mark Twain ♥ StockViz

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Did you know that even though Mark Twain made a substantial amount of money through his writing, he lost a great deal of it through investments, mostly in new inventions and technology? He lost not only the bulk of his book profits but also a substantial portion of his wife’s inheritance. So much so that he had to file for bankruptcy!

Twain lost $300,000 (equal to $8,058,462 today) on the Paige typesetting machine. He also had a publishing house that went broke trying to sell a biography of Pope Leo XIII.

His state of affairs turned for the better after he befriended the financier Henry Rogers, a principal of Standard Oil, who helped him completely reorganize his personal finances.

If he were alive today, we would’ve advised Twain that just because you are good at one thing, it doesn’t mean that your expertise automatically translates to investing money. He would have loved StockViz for that advise. And Tom, Huck and Joe Harper would have had all the time in the world to be the pirates that they wanted to be!

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