VIX Spikes 13% As Investors Gripped by Fear

It’s not too late to find that perfect, fright-inducing Halloween costume. Might I suggest you go as a Wall Street trader?

Investors are once again pretty scared about where stocks are going next. CNNMoney’s Fear & Greed Index, which measures seven indicators of market sentiment, fell to “Extreme Fear” levels on Monday.
The move took place as tech stocks plunged and the VIX (VIX), a gauge of volatility that is one of the components of the Fear & Greed Index, spiked more than 13%.

Now it may seem odd that the market is this jittery.
The Dow and S&P 500 are barely below the all-time highs they hit last week. The Federal Reserve has signaled that low interest rates are here to stay for awhile. And the Alibaba (BABA) IPO was a smashing success. What’s not to love?

But all those factors might be helping to create more fear.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza