SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Stock Attack -- A Complete Analysis

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dan Duchardt who wrote (31662)9/30/2000 10:38:32 PM
From: donald sew  Read Replies (1) of 42787
 
Dan,

Good well thought out post.

Although I do mention the peaks in the VIX of 1987 and 1998 I really do not stick to stagnant type of analysis. I prefer to use relativity as an important basis for most of my analysis, including the VIX. This is such a dynamic market that rules which were appropiate a year ago may not be as appropriate now.

Using QCHART compare the ratio for the the DOW to the VIX(INDU.X /VIX.X). In early APRIL that ratio got as low as 34 per the weekly charts, and it closed this FRIDAY at 60, nowhere near the 34 in early APRIL.

Does it imply that the market is heading lower, No - that would be the wrong conclusion. What I feel is a good conclusion if that if the market was to continue to drop, it could drop alot more, and alot more than most think. In other words, the potential downside could still be substantial. Am I going to put alot into in, NO, but I do think it is an important note that I will remember.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext