Vix is the fear index
When the GameStop drama finally ends watch the Vix. For some it will end very badly, sadly. See here as this is a classic case of Speculator's Guilt. Remember, whenever someone presents you with an investment that 'can't fail' and is 'risk free' many have pierced themselves with grief through that misadventure. If it has happened to you then learn the lesson. If it hasn't then learn the lesson by watching how everything unfolds.
An opportunity
However, a good opportunity that presented itself on Thursday was the recovery. The VIX is a heightened volatility marker and with greater volatility this shakes out the leveraged investors. So money is moving out of markets, and fast. However, when the VIX drops we can see stock markets recover. It is a pretty reliable pattern and you can see the last couple of recoveries in the VIX led to large gains in stocks. So, with the Fed on hold, we ccould have expected stock dips to find buyers. You can use the VIX to help with the timing.
