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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?


To: j g cordes who wrote (20605)7/13/2002 2:32:03 PM
From: j g cordes  Respond to of 26752
 
This could be a significant VIX insight for those using it as a timing indicator.

"... This is because each time the VIX has penetrated the 40-to-42 zone, it hasn't stopped until it reached 55, at least on an intraday basis. Back in October 1987, "the Crash" blasted the VIX to the unfathomable level of 170 (see the chart below). Investors who had shorted OEX put options without protection (it was a very popular strategy leading up to the market crash) were forced to pay exorbitant amounts to cover their losses."

schaeffersresearch.com