It’s hard to tell, AJ. NDX and the DOW performed very differently during this bear. His analysis is based on price action. In a sense, the price 'incorporates' other things. Max Pain will move down during declines, and up during rallies, as people chase rallies buying calls and load up on puts on the way down. VIX will move in an opposite direction, (edited) etc. There is no precise correlation, of course, and they all have some predictive (or confirming) value, but still, the price moves are primary. They are the purest reflection of the mood of the crowd.
edit: AAII, of course, is contrarian... Also, it is pushed around by price, ultimately. |
