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To: fedhead who wrote (137895)1/26/2002 5:30:53 AM
From: craig crawford  Respond to of 164684
 
>> I wonder if VIX is still a valid indicator considering almost every body and their mother watches it these days. <<

of course it's a possibility. no one can say for sure. but the market has written off a lot of other indicators in the last few years when they were still valid. i remember when the yield curve was inverted all the market pundits made up all these excuses as to why that indicator wasn't valid for predicting recession anymore. i remember after the fed hiked three times and investors were supposed to go away but people said it was different this time.

perhpas it is different this time, but i find it interesting that the market has gotten choppy lately as investor sentiment has turned more bullish. nasdaq short interest fell 5% in january, the vix is at a 6 1/2 month low, the nasdaq vix is only a couple of points away from a 52 week low. a couple things to definitely keep an eye on.

a few days ago the markets tested their december lows (nasdaq broke below them) and then managed a few positive days although the market sure has finished weak lately. all the while it looks as if investors are getting more bullish. bears watching (sorry bad pun).