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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST

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To: Gottfried who wrote (15340)5/23/2004 12:06:55 PM
From: Return to Sender  Read Replies (1) of 95572
 
VXO/VIX/VXN vs SOX and AMAT on long term monthly charts. Tops are set when volatility is low. Bottoms are set when it spikes higher. Too much complacency is bearish. Too much fear as shown by panic selling is bullish and can be seen by spikes higher by the various volatility indexes. Regardless of whether the market is in bull or bear mode the volatility indices have an inverse relationship to the market as a whole.

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Look at the first chart Gottfried and you will see that the VXO which, was the old VIX, had two of it's highest spikes above 50 in 1997 and 1998. Most of us who read this thread never thought of 1997 or 1998 as a bear market even though stocks prices for our favorite stocks in the SOX, AMAT for example, was far lower in price at that time than it got even in October 2002.

RtS
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