Is it Too Soon to “Buy Volatility?” (Preview)
By Lawrence G. McMillan
As we stated many times in this week’s Stock Market Commentary, there are overbought conditions but no confirmed sell signals (yet). However, we know volatility is low, and we also know that it generally begins to rise in August.
To bolster that last statement, the chart of Composite $VIX is reprinted below. We had written an article about this a few issues ago. The most notable thing is point C on the chart. That is, $VIX typically makes its yearly lows in July and then begins to rise after that.
