The holidays are here, and so Business Insider put together a guide showing when the markets are open and closed. I am the Portuguese Council Chaired Professor of European Studies and Professor of Economics at INSEAD, a business school with campuses in Singapore and Fontainebleau (France), a Senior Policy Scholar at the Center for Business and Public Policy at the McDonough School of Business (Georgetown University, USA) and a Research Fellow at the Center for Economic Policy Research (London, UK).
In addition to this, the cup and handle pattern is well known throughout for showcasing the variation of the stock prices and thus the right time to invest in it. Thus in contemplation of the importance held by market analysis tools and the valuable information provided by them, it becomes imperative for the investors to follow a calculative approach for harvesting the best of benefits from stock investments.
For this reason, it is a good idea to use the P/E ratio stock valuation method for general guidance regarding valuation, and then to look at a variety of other factors that may affect a stock’s share price going forward, such as forward earnings per share (EPS) guidance and the economic outlook, before deciding whether a stock or the stock market is a good value and worth buying.
While the VIX cannot be traded directly, and is only a barometer that indicates how much stock market traders and investors are willing to pay for options to protect their long stock positions at any given moment, there are a number of exchange traded funds (ETFs) that derive their value from the trading level of options that trade generally in tandem with the VIX.
Volatility ETFs can also be played on the short side to make money on a falling VIX by borrowing shares of volatility ETFs (if available) when the volatility ETFs are trading at high prices, selling the borrowed volatility ETFs shares short at high prices, then waiting for market volatility to settle down, and the VIX and volatility ETFs to fall in price.