Trend Setters and Range Riders Message Board

STOCKTALK

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 : Trend Setters and Range Riders

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bobby is sleepless in seattle who started this subject	5/27/2001 11:29:15 AM
From: keithcray	Read Replies (3) of 5732

Excerpt from StockBottom.com As Volatility declines, often precede a short-term market top. Indeed, volatility has declined in a rapid manner in the past three weeks. Traders should take note, as volatility declines often precede a short-term market top, the opposite of what the herd expects. The CBOE Volatility Index, or VIX, had been fairly high -- at or above the 27 level -- until last week, when it fell to 22.94. The VIX hasn't closed below 23 since Sept. 28. It is clear that investors are becoming complacent with the state of the markets, expecting more of the advances enjoyed by those with a bullish sentiment in the near term. While it is entirely possible that a reversal based on VIX readings could be extreme in nature, the risk in doubling down or adding significantly to long positions here is tilting evermore towards the bear camp with each VIX down tick.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next