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


To: Psycho-Social who wrote (17414)1/1/2002 7:32:48 AM
From: Justa Werkenstiff  Read Replies (1) | Respond to of 99280
 
Psysocmarper: Re: "I think you'll find that it's basically a contrarian indicator, but doesn't function well as a timing tool, nor does a steep decline necessarily follow from a VIX in the low 20's."

In a bull market you might be right and much of your study encompasses a bull market period. But no matter how anybody cuts it, it has worked wonderfully in this bear market as a intermediate timing tool, especially when it diverges from price at the extremes. It just did that. It did this in June too. Of course, if one views this as a bull market, you might discount it and say the Vix can always go lower and/or that it is not pertinent in that context and you would have a point.