Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bobby beara who wrote (19486)	7/6/1999 2:27:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

Bobby, i have read Shaeffer's interpretation of the sagging VIX. it was this very same interpretation that led him to be bullish in july of last year. it goes to show that any technical indicator is prone to interpretations that support one's views. he also calls the measly a/d line bullish, as it induces worry in the market, which is positive. on this point i happened to agree with him for quite some time. however, i know from studying historical examples that the longer an a/d line divergence persists, the more painful the ultimate adjustment in prices will be. btw, what do you think of the continued strength in the nutz? this, more than anything else seems to support the bullish case, even though they still lag. they're doing their best to catch up though it seems. the unwinding of fear, or complacency, that is the question. regards, hb

To: bobby beara who wrote (19486)	7/6/1999 4:29:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 99985

BB; I readed them, <G> They don't explain the pop up of the vix with the market going UP, except maybe the second one but not in so many words. The UP vix had more OI in it , so sellers of poots were bullish the ( price of said puts fell a lot ) the VIX didn't show taht. lot's of poots were sold ( net ) not just volume , it was not a closing of positions this was opening new ones, and the sellers were so bullish they were taking any thing they could get. So in spite of the VIX being up it was bearish because of an increase in open interest and a drop in the premo. I guess ? Any way the VIX as reported can't be counted on to be reliable Monty pointed that out some time ago. In this case the VIX lead the market. I thought it was odd that it would go UP with a rising market and it was, but I didn't understand why, and I'm not sure if I do yet. This just don't happen often enough to mearsure it. Jim PS the futures just set up a gap up in the morning again.