Market commentators have long praised the utility of the VIX, specifically it's ability to pick market bottoms.
We did some research over the weekend and found a related "indicator" that has been a much more accurate predictor of tradable bottoms in the recent past than has the VIX. Over the past year, the VIX has picked four out of two (pardon the pun) intermediate bottoms.
As the following chart shows, the indicator that we speak of has accurately predicted each of the two intermediate bottoms that has occurred over the past 12 months and has not provided any false signals.
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