Frequently Asked Questions

Dr K VIX Volatility Model
These markets in 2015 and so far in 2016 are the most frustrating !

Q: I just need to vent. Will the market ever trend again? I am worn out from 2015 and this year is starting the same. Any comments would be appreciated.

A: This question has been asked many times over the last century when markets are at their most challenging. When investors start throwing in the towel, that is usually the point at which markets start to trend again.

That said, there is comfort in knowing the only thing that does not change is change. Markets always change. 2016 seems to be tracing out much greater volatility than 2015, so change is afoot.

The VIX Volatility Model takes advantage of this, based on prior extensive testing, by profiting handsomely during volatile markets but is quick to cut its losses (though the very rare large gap down can occur) so one profitable trade can more than make up for 5 losing trades. And as for stocks during chop and slop periods, it is still best to buy on weakness so you risk less in your trade.

Published: Jan 30 2016, Modified: Jun 26 2016