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To: tsigprofit who wrote (11365)7/30/2002 1:18:01 PM
From: James Strauss  Read Replies (2) | Respond to of 13094
 
The VIX seems like a really good indicator. I went heavily long in the last few weeks, and kept adding as we went to 50 and then 55. Do you think that a VIX of 20 also has a good record signalling market tops.

A quick look a the chart you have for the last few years,
and I could have done a lot better simply going into a bear
fund when the VIX was around 20, and a bull fund when it was
over 50.


Good going Matt...

A lot of people are discovering the VIX... Extremes at both ends >40 and <20 seem to be turning points in the market with an inverse relationship... Moves above 40 are near bottoms and moves below 20 are near tops...
chart.bigcharts.com

As you can see, the VIX is more informative at bottoms... The Peaks in the VIX are accompanied by troughs in the S&P 500... The bottoms in the VIX are not necessarily market tops but are in the neighborhood of tops...

Jim