|2014.01.24 VIX Cycle Model|
The VIX cycle model once again suggests that higher VIX prices are to be expected over the next year. However, astute readers will notice that as shown above, the turning points are better predicted than the magnitude of the change at those points. Right now, according to the model, the VIX is "ahead of itself" and a very short term correction, as happened after previous positive and negative spikes, is very likely. The previous model output is shown below.
|2013.12.13 VIX Cycle Model|