03/07/2026
VIX spikes bring panic washouts, that become buy the dip opportunities, but you don’t typically see a real bottom reversal until the VIX has a big up day, like up 25%, and then finished the day back in the red.
Despite all that, last week individual investors bought the dip big time. On Monday, they bought $2.2 billion in stocks and ETF’s via online accounts, according to JP Morgan. They are unfazed.
As the WSJ reports, “Fears of economic disruption from AI and the conflict with Iran have sent stocks on a roller-coaster ride in recent weeks—but the everyday traders who play an increasingly pivotal role on Wall Street have remained the market’s most loyal buyers.
February was one of the strongest months for retail buying since the meme-stock frenzy of 2021, according to a report from Citadel Securities, and the fifth-biggest month on record.”
This buying is helping keep the market averages up, despite the rise in the VIX and oil prices.
The way the market has been trading it wouldn’t shock me if it churns around for a few weeks before having a final VIX spike.