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

To: limtex who wrote (39886)	3/11/2002 3:58:36 PM
From: the_wheel	Read Replies (1) \| Respond to of 99280

Maybe it sees you watching it 24/7 and has decided to give a 'false signal'? Why don't you try looking somewhere else? PS Ever notice how the Dung really likes to hang at 1929? Seems like it was there once or twice before. PPS Ever been to San Antone or Phoenix, AZ? I went down the river there once. Remember the Alamo?

To: limtex who wrote (39886)	3/11/2002 4:00:11 PM
From: Shack	Read Replies (3) \| Respond to of 99280

I find it strange there is so much debating of the VIX. The facts: VIX readings of less than 22 have preceded major market sell-offs. They can of course hang around that level for weeks. End of debate.

To: limtex who wrote (39886)	3/11/2002 4:51:47 PM
From: Win-Lose-Draw	Respond to of 99280

After all how does it know how many people are watching it Are you asking a serious question, or are you just trolling?

To: limtex who wrote (39886)	3/11/2002 11:24:17 PM
From: Psycho-Social	Read Replies (2) \| Respond to of 99280

The VIX: Sure it can be useful, although it's not one of the indicators I use for decision-making. The reason it's somewhat tricky to use is that it's a hybrid indicator: a measure of sentiment and a measure of expected volatility. The math would be somewhat complicated, but if you could devise a formula using past daily, weekly, monthly and quarterly volatility, you could adjust for the volatility aspect and come up with overbought and oversold bands that "float". Remember that during the mid-90s, when we'd been through a period of very low volatility, the oversold area was 17 and the overbought area was around 9. Using 22 as the oversold reading would have made no sense in that era, and I suspect we may be gradually moving back toward lower VIX highs and lows. Right now for example, 20 might be the lower limit and 30 or so the upper.