Founded by a few data and finance dorks, we decided we wanted to share our model with other people. Are we making money with our own model? Well, yeah, of course.
So why build this site? For fun really. And because some of our friends asked us to.
But... how does it REALLY work?
Ok, fine we'll share just ONE of the indicators we use below. You can build this one yourself in Stockcharts or TradingView. Check it out.
SPX and VIX Correlation.
Normally when the SPX goes up, the VIX goes down. Makes sense, right? VIX is volatility, when the SPX is going up, the VIX usually does go down.
The key is that word, "Usually". When it doesn't, when the VIX and the SPX climb together, or fall together, something may be going on behind the scenes. This is what's called CORRELATION. You, yourself, can check the correlation between any two data set over 5 days, 10 days, 50 days, whatever. This is what a 7-day correlation (and checking against other timeframes ), looks like between the VIX and the SPX: