JC, as I believe I explained once before, personally, I don't use the VIX to tell me what investors are thinking, feeling, doing. And certainly the "mid-range" fluctuation is hardly useful. But rather I examine the extreme highs and extreme lows. . . especially the dramatic spikes. According to my studies, they have signaled dramatic moves in the market. But NOT because of investor sentiment, but just the opposite. . . . I believe the Wall Street Insider Power Brokers watch this indicator for signs of capitulation, panic, and fear on the one side and confidence, disbelief which leads to bagholding and irrational bullishness on the other. I believe that these heavy hitting players DO use these indicators [in their extremes] to signal when to reverse their positions. And that is why capitulation and panic is what ignites the rallies, while indications of over zealous bullishness tends to lead to the sudden sharp declines.
Other than that, I don't find intraday movements in the VIX to be the least bit helpful. . . and generally only study it from a daily perspective.
Not sure if that helps any. . . but it should better clarify my position. I'll go into greater detail, technically, at a later date.
OT> St. Louis has been fun. . . . a city with lots of heart. . . I've seen grand slams in the home of the Rams. . .a traffic jam en route to our Bread Sam. . . masters of music and art within the same park. . . Riverboats, paddleboats, loads of wonderful smiling people. . .and after sampling the taste of Italy at Cunetto's or Vitale's . . . I now know what St. Louisans are always smiling about.
Rande Is |
