I agree completely, the vix is a farse. I wished there was a Vix ETF so I could short it. But this is what concerned me about gold at the end here, we had gold going up on nervous sentiment and not long term inflation.
Healthy markets don't move up and down by 400 points. The fact that volatility goes down on days when the market moves up this much doesn't make sense to me. I guess the VIX is only a fear index when in fact it should work both ways.
How many times have we seen this? The markets sell off, bounce back, only to sell off again. There are some good values in the market but we don't know where the economy is going. I wouldn't buy into these sharp moves just yet. The only sector that looks really cheap is commodities. Even in a slowdown, we still need energy, food and basic materials. I don't trust tech, retail or financials.
This market is still scary, one day doesn't make a trend. The moves down are fast and furious, we aren't through this crisis yet by far.
Personally I think the longs have capitulated last Friday at the opening bell. The previous bounces were of huge volume and big spikes. It appears the longs are now hesistant to jump back in. That should be bullish going forward. And the price of spot gold rallying in face of a stronger dollar looks bullish as well.