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Strategies & Market Trends : Raptor's Den II -- Ignore unavailable to you. Want to Upgrade?


To: Lone Ranger who wrote (286)4/19/2003 4:20:16 PM
From: Win-Lose-Draw  Respond to of 3432
 
(1) $vix has an inherent bias to move in the direction of the market, this is a fundamental part of the way it is calculated, (2) $vix doesn't measure complaceny it measures volatility and volatility declines in aging bears and, (3) in a bear market it is shorts, not longs, hedging their portfolios with calls, not puts, just look at CFZ as an example of that behavior.

all imo.



To: Lone Ranger who wrote (286)4/19/2003 9:03:02 PM
From: Justa Werkenstiff  Read Replies (1) | Respond to of 3432
 
LR: There have been certain periods of time like last March, for example, where the Vix has trended lower along with the market. One could argue that it suggests complacency with a decline in prices. Last March that was quite bearish.