The "VIX premium" is the percentage that the VIX was above the 20-day historical volatility reading of the SPX.
The goal is to create a problem for which students would use historical context along with reading skills to interpret a text.
CNN: State, federal education experts mull nationwide standards
When the VIX reading and SPX historical volatility converge following a period of weakness, such situations usually mark bottoms and precede a period of bullish price action.
Even with the decline, bullish sentiment is just slightly beyond one standard deviation of its historical norm, making the current reading atypical, but still not an outlier.
Based on the current 20-day historical volatility of 19.1, a VIX reading of 27.5 or 28 could be viewed as expensive.
These measures include the current reading, the number of weeks above its historical average and the eight-week moving average.
FORBES: Bullish Sentiment Strong But Investors Still Go For Dividend-Paying Stocks
Optimism is currently more than one standard deviation beyond its historical average, meaning that this is an unusually high reading.
It is also more than one standard deviation below the historical average of 30%, making this an unusually low reading.
But the above should give one food for thought in terms of taking historical volatility into account when determining what a "high" VIX reading really is.
Pessimism not only stayed at its lowest level since December 23, 2010, it also remained at a reading that is more than one standard deviation below the historical average of 30%.
The world is full of examples of people becoming interested in real-life skills or historical events because they learned about it through a video game (or by reading or watching TV).
应用推荐