XJO 0.10% 7,767.5 s&p/asx 200

Any Ideas/Comments on Below Note ? This was taken from...

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    Any Ideas/Comments on Below Note ? This was taken from marketwatch.

    Market Insight: Volatility index crossover
    It was mentioned above that the Short-term Volatility Index (VXST) closed above VIX yesterday. We have done studies on past occurrences of that phenomenon, and they have been relatively conclusive: That is a signal to buy short-term straddles on the broad stock market. One might think that it is a sell signal for the broad market, but it really isn’t. Yes, sometimes the market declines after VXST crosses above VIX, but that only occurs about half of the time. However, there is a noticeable increase in realized volatility when it happens, and that means that straddle buys (usually three weeks out, approximately) work best.
 
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