SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?


To: Tommaso who wrote (162865)4/29/2002 4:56:39 PM
From: Tommaso  Respond to of 436258
 
This is the best I can do at overlaying the VIX and the other indexes. I can see how it got a reputation as an indicator, since it worked very well in seeming to predict the later stages of the bubble (as well as the recovery from the 1987 crash earlier). It seems to get less reliable after 2000, coinciding with temporary respites from a general bearish trend. Note especially the last quarter of 2000, which might well have been interpreted a the building of a pretty solid bottom using the VIX.



To: Tommaso who wrote (162865)4/29/2002 5:14:26 PM
From: sammaster  Read Replies (2) | Respond to of 436258
 
i agree that vix may not always signal a "true" bottom but may indicate a short-term bottom...
i was just saying that i would not even consider covering my shorts until vix spikes



To: Tommaso who wrote (162865)4/29/2002 9:21:47 PM
From: yard_man  Read Replies (1) | Respond to of 436258
 
OTOH if you had used rather extreme LOW levels of the VIX to invest with the trend -- there are only a few times at most where you would have gotten thrashed