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Strategies & Market Trends : Galapagos Islands

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To: Challo Jeregy who wrote (37174)4/18/2003 1:41:59 PM
From: PuddleGlum  Read Replies (2) of 57110
 
Very good find, Challo. I use a somewhat different approach to relative VIX, but in a quick check I found extremely low relative VIX readings in Jan-Feb 1995, which was during market liftoff. I also noticed that extreme lows reached immediately after a rapid decline like we just had are usually followed by further upside in the market. But that was just an observation from a quick check of things. I'll have more details later.

[edit] The article stated While it flags interim market bottoms with great precision, the VIX is much more ambiguous in clearly marking major interim tops

I have found this to be true, and it was very confounding to me because I saw 3 clear market tops that my VIX indicator just plain ignored. Fortunately, that problem has been at least partially resolved.
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