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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: ajtj99 who wrote (17138)1/1/2002 5:44:17 AM
From: Psycho-Social  Read Replies (1) of 99280
 
VIX Fluctuations:
Collecting data on 2 periods where the VIX was at comparable levels is not the best method of gauging the future. It's better to make a long-term graph going back 10 yrs or so, then see how the Market behaved subsequently when the VIX was above a certain level, or below a certain level. I think you'll find that it's basically a contrarian indicator, but doesn't function well as a timing tool, nor does a steep decline necessarily follow from a
VIX in the low 20's.
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