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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: bearshark who wrote (18564)6/25/1999 1:32:00 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 99985
 
Bearshark, i believe the VIX is the key to this. although it supposedly measures volatility premiums on both OEX calls & puts, it tends to move inversely to the market, expanding only when demand for puts is strong. when index puts are acting like dogs you can assume that complacency in the market is high - and negative surprises are likely.

regards,

hb