$VIX Volatility Extremes, Narratives, Booms & Busts!

VIX volatility index extremes have always been an important factor when assessing the cyclical nature of financial markets.

I demonstrate in this chart what values and narratives to look out for at these extremes. This can help ignore the noise when buying during low social mood / fearful events when everyone else is panic selling, and, selling during exuberance and booms when everyone else is FOMO buying.

This is the cyclical nature and intertwined relationship between media, events and financial markets that traders and Investors want to take advantage of.

Good times create positive social mood, exasperating over leveraging and booms with extreme positive news / silly price targets 'New Golden Age / Paradigm shift' style reporting.

This unwinds aggressively creating negative social mood which the media exasperate with 'fear and doom' reporting.

VIX is a useful tool to hedge against market uncertainty.

Safe trading