Volatility premium on QQQQ

Charts courtesy of StockCharts.com



Charts courtesy of StockCharts.com

Volatility premium on SP-100

Charts courtesy of StockCharts.com



Charts courtesy of StockCharts.com

Long term VIX studies

Charts courtesy of StockCharts.com



Charts courtesy of StockCharts.com

Volatility and SunSpots
To get a look at sentiment prior to the 1987 crash, we can take advantage of a correlation between SunSpot numbers and the Volatility index. While this linkage in behavior might seem strange, there have been studies correlating weather, harvests and industrial output and recessions with SunSpots. We can see by overlaying recessions over the SunSpot numbers that they match our expectations for high Volatility and Fear preceding these recessions.

Charts courtesy of InvestmentTools.com



Charts courtesy of InvestmentTools.com