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Technology Stocks : Semi Equipment Analysis

SOXX 306.04

0.0%

Dec 26 4:00 PM EST

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To: Sun Tzu who wrote (8772)	2/25/2003 12:32:34 PM
From: Return to Sender	Read Replies (1) of 95640

Over the course of the last couple of years a VIX print of over 50 has been a dependable indicator an oversold market due to high levels of fear. Market rallies have taken place in every instance after a market close VIX above 50. For our purposes here I will use the VIX and the SOX as examples. If the VIX is rising strongly you can count on the SOX falling strongly as well. Run any time frame you like: stockcharts.com\|D\|B14 The VIX reacts to the market but it is also predictive based on past extremes. If the VIX closes above 50 again I expect a rally off the bottom of no less than 25% for the SOX. See here how the QQQ has rallied after a close of the VIX above 50: investorshub.com And here how AMAT and the SOX trade inversely to the VIX moves: bigcharts.marketwatch.com The VIX may not offer much predictive value between extremes but at extreme levels both high and low it does not just react .... it predicts. RtS

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