Sector Investing

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It's interesting that today's rally was not on higher volume. That leaves it somewhat questionable to me. I watched part of Cramer on Mad Money tonight where he was suggesting that the recent action in the VIX had not indicated any incumbent rise of volatility ahead. Why? Because it did not print a higher high recently:



True but we actually have more than one volatility index. The VXN and the VXO which once was the old VIX have printed higher highs after higher lows:




Bottom line to me is that trends change over time. There usually is not a single event, or indicator that tips us off to when they are changing, but to say that volatility is not flashing a potential change based on the action of the VIX alone is not fair. Worse yet is that it may be inaccurate.