Chance missed (2010-12-02 VIX analysis)

Crocodile (0122.HK) jumped another 17% yesterday. Though I have recommended it in my previous post in mid-November (Famous brand's unpopular stock), I failed in recognizing the time to buy it and missed the chance to make around 35% profits in a short period. Recently I have been working hard on my CFA Level I examination and I spend less time on tracking the market.

Anyway, last week I said the volatility would be likely to jump as it broke the downtrend resistant. Major stock markets did fluctuate a lot this week. So let's have a bit update on the Volatility Index.



Well the index seems to be fluctuating a lot as well. The volatility of the volatility surges :) However, undoubtedly the index broke the red downtrend line. It could drop back and test it, which has changed to support, but I would expect an increase instead.

MACD has reversed its movement to downwards, but still there is not bearish cross. Even if there is a cross, at this level, the bearish power is not that strong and the signal is not strong as well.

So it is likely to go higher, giving more extreme moves of S&P500 index, which would lead global markets to fluctuate as well. Just watch out.