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I found this article regarding some trading tips

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dilwinkle Member Profile dilwinkle  
Tuesday, July 17, 2012 12:57:07 PM
Re: None Post # of 3353 
I found this article regarding some trading tips on the Vix. Pretty interesting.

Not surprisingly, the biggest move in the VIX during the two weeks before and after FOMC policy decision comes on the day of the policy statement, where the VIX falls 2.6% from the previous day's close, on average.

Of even greater interest, however, are two other lesser known patterns that traders should also be aware of. In the six days prior to the FOMC statement, the VIX rises, on average, some 2.4%. Additionally, during the period from two days after the FOMC statement to nine days following the FOMC statement, the VIX rebounds an average of 2.9% from its low.

This type of rise in the VIX before and after FOMC meetings is not atypical for highly anticipated events. Data for other volatility events show a pattern that is similar to that shown around FOMC meetings.

In terms of implications for investors, this means that the best trades may not be on the date of the volatility event itself, but in the week or two before and after these events

btw, this thing just played out to perfection. I think the vix has 2 more down days before it rebounds.



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