Our quantitative-based risk ranges help investors buy low and sell high. This dynamic model uses three core inputs to determine the likely daily trading range for publically-traded assets:

  • Price
  • Volume
  • Volatility

These ranges are signaling significant investing intel about stock market volatility. The immediate-term risk range on the VIX has been widening recently to today’s range of 9.78 to 15.39. That’s important.

As Hedgeye CEO Keith McCullough explains in this excerpt from The Macro Show today, “Think of our risk ranges as the batter’s box. If you had a batter’s box that is 3 standard deviations wider than the normal batter’s box, you’d say, ‘Wow it’s harder to hit the ball.’ The pitcher could throw the ball three feet past my bat and strike me out.” With the VIX risk range widening, that suggests a subtle shift in the immediate term trading environment.

This is one reason why we’ve been getting less bullish on the stock market on an immediate-term basis.

Watch the video above for more.