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To: Sun Tzu who wrote (8774)2/25/2003 2:38:01 PM
From: Kirk ©  Respond to of 95640
 
Great post!

The VIX indicator is somewhat vindicated in August and October. But its track record remains around 50:50.

Dang... I have coins that work just as well as that! <VBG>

Kirk



To: Sun Tzu who wrote (8774)2/25/2003 3:02:25 PM
From: Return to Sender  Read Replies (1) | Respond to of 95640
 
A VIX price over 50 or under 20 does not happen very often. In this article not all the numbers on the graphs are accurate but I agree with the overall discussion of market reaction to high and low extremes in the VIX:

zealllc.com

As for short term usage of the VIX. If you see the VIX extended more than 10% above or below its 10 day EMA (pink on the graph) then the market is probably due for a short term change in direction.

stockcharts.com[h,a]daclyyay[pb20!b50!b200!c13!c20!c50!i!d20,2!f][vc60][iub14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14]

RtS