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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: 16yearcycle who wrote (15733)12/23/2001 2:59:22 PM
From: TREND1  Read Replies (1) | Respond to of 99280
 
I for one, thank you for the chart.
Always willing to learn.
And learn I did !

Larry Dudash



To: 16yearcycle who wrote (15733)12/23/2001 3:09:16 PM
From: Chris McConnel  Read Replies (1) | Respond to of 99280
 
>> By saying this, are you trying to explain away the sustained below 20 vix?

No, trying to find reason for the VIX being in the 20-40 range for the past couple years. Since there is greater participation in the option market, and the transaction cost is much less now, people are much quicker to buy puts during market declines, even if the decline is small.

>> I have no axe to grind, but simply want to give a factual heads up that this one indicator taking alone may not be reliable.

Like i said in my original post, the VIX is good at calling bottoms but so-so when it comes to tops. It's probably best when used with other indicators, but at bottoms it does a decent job by itself.

EDIT: Larry's right, good chart. Also VIX has to rise above 40 and reverse before i would use it.