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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 690.38+0.4%Dec 24 4:00 PM EST

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To: Tom Pulley who wrote (83764)4/26/2003 6:24:34 PM
From: Hawkmoon  Read Replies (2) of 99985
 
The discussion of the "relative VIX" was interesting and provides good insight into one of the ways of massaging data to find statistical relevance.

Question Tom.. The VIX is a measure of volatility, right? Little volatility and the VIX declines, while when there is major moves in stocks, the VIX rises.. right?

So if there were a buying panic and the markets gapped up violently, wouldn't that ALSO cause the VIX to climb?

Thus, can we really say that everytime the VIX is "oversold" it equates to another selling "wash out" and eventually a market reversal??

Hawk
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