DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: TraderAlan who wrote (4880)	10/15/1999 7:09:00 PM
From: TraderAlan	Read Replies (1) of 18137

Here's some food for thought from a professional currency trader I know. Have no personal opinion. The VIX is very esoteric stuff: Re: US Equities --- The VIX (CBOE Market Volatility Index) made a huge spike and formed a very nice inverted hammer to close near its lows today. It reached a high of 35.48 which is the highest level since January 14 of this year. This is a very good indication that we have reached a bottom, most likely a short term bottom, but an important turning point at least. The most recent occurrence of this formation was August 5 and August 10 (1999). The S&P cash market rallied more than 100 points over the next 12 days. The equity indices did form a hammer type reversal like the one we saw on a very notable VIX turning point, October 8 of 1998. I suspect that we see the final turn on Monday. I still believe that a downtrend has begun but this could be a very good trading opportunity to trade countertrend and to initiate shorts in equities and dollars at better levels. Good luck and God bless.

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