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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: SpecialK who wrote (83738)4/16/2003 5:06:49 PM
From: Jon Tara  Respond to of 99985
 
I think that Briefing is reading the VXN on way too short a time-scale. Plus their notion of what is a "high" VXN is rather curious. March 18-20 was a "high" in the VXN? Huh?

The negative correlation seems quite intact, at least regards lows in the VXN. They seem reliable leading indicators for the NASDAQ market recently. Look at the lows in the VXN on 8/22, 11/21, and 1/14, and the ensuing market direction over the following 1-2 month period.



To: SpecialK who wrote (83738)4/17/2003 3:36:48 PM
From: Jon Khymn  Read Replies (2) | Respond to of 99985
 
Please take a look at these 6 mo. and 12 mo. chart of VXN and Nas.

There could have been few short period of times where VXN and Nas are positive relation rather than negative,
but the chart tells me overwhelmingly these two are in inverse relation.

finance.yahoo.com^VXN&d=c&k=c1&c=^ixic&a=v&p=s&t=1y&l=on&z=m&q=l

finance.yahoo.com^VXN&d=c&k=c1&c=^ixic&a=v&p=s&t=6m&l=on&z=m&q=l