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Because implied volatility is forward-looking, it tends to lead backward-looking historical (or realized) volatility readings.  This relationship stands to reason: options prices can and do respond in real time to new information, while any historical measurement - even a short-term one - will by definition lag as day-to-day changes are gradually incorporated into the period under review.

Federal Reserve Takes First Steps To Revive Markets, ETFs – Tom Lydon, ETF TrendsInternational ETFs Plummet Again – Scott Burns, MorningstarCarbon ETN Outpaces Oil And Natural Gas ETFs - Mike Havrilla, Mikehav Market BlogVIX Jumps To Record, Topping 56, On `Mad Rush' To Sell Assets – Jeff Kearns,

The Market Crash of 2008 continues.  I watched the carnage unfold on my market model in real time and I’ve never seen this level of panic before.  Scary.  The VIX touched 58 yesterday, a new all time high.  It probably would’ve touched 60 if we went any lower than the lows yesterday.

What a wild day. Everyone knew coming in this morning from the markets which opened in Asia that this would be one for the books. The intense and indiscriminate selling that we saw today can only be characterized as forced liquidation. People are not selling just because they are fearful, or because they think the market is going lower.

The events in the financial markets have, to borrow the common turn of phrase, been unprecedented. But in order to better appreciate the current gyrations of the market, I’ve taken a look at some of the historical market data for the dow jones average over the last few weeks.

The events in the financial markets have, to borrow the common turn of phrase, been unprecedented. But in order to better appreciate the current gyrations of the market, I’ve taken a look at some of the historical market data for the dow jones average over the last few weeks.

Lets start out with the Ugly. - Dow down 800 points at the lows of the day. - New lows vs New highs were extremely lopsided - VIX, VXN both made new highs. Now the Bad. - We didn’t see capitulatory volume. - Market rallied way off its lows. - I had to eat 8% loss in the NDX and 7.4% loss in the RUT.

Monday evening news Roundup Asheville, North Carolina has continued to be abuzz since Brock Obama spoke yesterday. He was his usual self, amazing. I’m sorry, I just don’t understand. Two weeks ago, when the stock market took a nose dive, we were told that a $700 billion bailout package was needed

'Fear' Index Hits All-time High Posted October 6th, 2008 by mal contends in Economy banking crisis of 2008 CBOE VOLATILITY INDEX (^VIX) Doris Frankel economy Emergency Economic Stabilization Act 2008 Reuters VIX Wall Street crisis of 2008 Who can argue that the Bailout Plan, incomplete though it is, is not needed to halt the fear breeding on fear?

Surf the volatility, dude The violent sell-off in stock markets this Monday morning, along with the stream of bad economic news of last week, is bound to provoke substantial cuts in short-term interest rates by the Federal Reserve and other central banks.