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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (4568)	3/31/2001 10:58:39 PM
From: marketing1	Respond to of 52237

if in fact you are right. then will they sell winners looks like non - tech dow /S & P time will tell regards, marketing

To: Chris who wrote (4568)	4/1/2001 4:35:53 PM
From: Sonki	Respond to of 52237

HI chris, here is an explaination of how VIX opereates different in bull mrk vs. bear. Bernie Schaeffer: The CBOE Market Volatility Index (VIX): Behavior in Bull and Bear Markets schaeffersresearch.com In bull markets, the VIX spikes higher during declines as put demand drives the implied volatility of index options upward. This action transpires as investors scramble to speculate on further declines or to hedge their portfolios. It is this fear that ultimately keeps the bull driving higher, as plenty of money sits on the sidelines when the market finds support, or when previous bearish positions get unwound after the market finally bottoms. These sidelined funds can then be shuffled back into the market, fueling the bull's momentum. On the contrary, in bear markets, optimism reigns supreme. Thus, as the market bounces higher, investors see more and more opportunity and get lured into the "it must be a bottom" philosophy and shy away from index put buying. Thus, implied volatilities on index options implode drastically during slight rallies. When the market inevitably moves lower, the VIX moves only slightly higher as the mentality that "it can't go much lower" persists. This bear-market behavior has asserted itself during this week's trading activity. On Monday, the VIX spiked 19 percent to the upside, closing near the 35 region (see the blue arrow in the daily chart below). This was amid a 4.3-percent decline in the S&P 500 Index (SPX – 1197.66), a 6.3-percent drubbing for the Nasdaq Composite (COMP – 2014.7), and a four-percent decline in the Dow Jones Industrial Average (.INDU – 10290.8).