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 : MARKET INDEX TECHNICAL ANALYSIS - MITA

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: J.T. who wrote (10347)2/13/2002 3:01:34 PM
From: Dexter Lives On  Read Replies (2) of 19219
 
Don't let 'em get to you J.T., you've been patient, disciplined and very methodical; that's usually a good way to make money over the long term.

I've just been studying VIX since 1990 vs. S&P 500 (yeah, I know, VIX is based on S&P 100) and noticed that the ranges for it break into 3 neat periods; 1990-91, then 1992-1996 then 1997-present. The respective ranges, ignoring spikes that were usually event (or market-collapse related<g>), are 18-28, 12-18 and 22-32. The stock index was doing the following in each period, bottoming, grinding up and going parabolic, respectively.

What does this tell us? Perhaps that the next 6-12 months will be spent transitioning from the 90-91 environment to the 92-96 environment, both in terms of volatility and types of returns available.

Sorry I can't post the chart to illustrate better but I recommend constructing it for anyone interested. You can get VIX and Index data from the Yahoo finance site under historical data download.

Cheers. Rob

PS Thanks for populating this thread with valuable data every night - your comments are entertaining as well! <vbg>
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext