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


To: westpacific who wrote (45008)3/28/2002 6:50:02 PM
From: furrfu  Read Replies (1) | Respond to of 99280
 
The last three times VIX got this low the Dow lost 1-3% in the following three weeks. Which makes me comfortable with my DJX puts. But where are you coming up with 18.10?

Doug



To: westpacific who wrote (45008)3/29/2002 6:31:15 AM
From: Chuck Williams  Read Replies (1) | Respond to of 99280
 
Westy,

As has been indicated earlier, there is not necessarily an inverse relationship between the VIX/VXN and equity prices. The VIX can go up while prices go up. Check out the post yesterday taking an historical look at the behavior of the VIX during rallies.

You have mentioned the low VIX about a half a dozen times in the past few days... what else are you using to develop your short-term outlook on equity prices? I would enjoy reading your rationale.