Vix is sick

The CBOE volatility index is an excellent tool to time your entries into and out of stocks. When the Vix spikes it usually is a great time to buy stocks. Vix spikes means there is much fear in the market, leading people to sell anything and everything. Vix spikes are also a good time to reduce your shorts. On the other hand, when the Vix is floundering, it means there is minimal fear in the market and an indication that investors are sticking out their neck for added return. This is a great time to short the market. One should harness the power of the Vix for alpha generation.