Description
VIXEK™ is a simple indicator with a nominal range of -5 to +5.
Behind its simplicity is a sophisticated, proprietary formula that takes 9 primary inputs during the trading day; goes through 17 different calculation steps, some of which have formulae that cannot be tweeted because they are longer than 140 characters.
The primary goal of VIXEK™ is to help active investors - individuals and small-funds - who may not have access to sophisticated tools, to look beneath the surface and know what might be happening in the market.
You may have noticed, on days the market closes up, most talking heads take a bullish stance and come up with a plausible explanation for why it went up. And when the market goes down the next day, they change their viewpoint promptly and deliver new explanations with equal confidence and certitude.
Using data, VIXEK™ tries to read any significant reversals in "emotional kinetics" (bulls turning bearish; bears turning bullish) amongst major market movers. And since these players tend to move as a herd, their action usually creates a gust which gets reflected in VIXEK™ - our WeatherVane for Smart Investments.
Put another way, we place far more importance on the "walk" and actions of influential players and less on their "talk".
Elsewhere in the website, you can see the effect of VIXEK™ on two different portfolios - a hypothetical leveraged (+3X/-2X) long-short ETF fund, and a hypothetical, unleveraged (+1X/-1X) long-short ETF fund.
In one of the boxes to the right, we have also listed some noteworthy "VIXEK™ Moments"!