T2W Trading Community

A larger view of (5).

In August 2002 the Vix starts to show a new uptrend in the Nasdaq composite.

The VIX can certainly help us all start changing our minds. It is easy to get caught up in a mental position as it did in 2002. Most of the good traders have been thinking “long” for over 3 years now. The VIX may help us see any turn that's coming a little earlier, thus, save us from some “wrong side” trades. It is only a Secondary indicator but a very powerful one. But don’t let this one article (or CNBC, Bloomberg, etc) influence you into believing that the Bull Market is over and now is the time to sell. There are a lot of other indications that say we have some very choppy times ahead. Think like a trader and protect yourself.

Remember, “If you think you’ve seen the top, you’re wrong – if you know you’ve seen the top, you’re too late!