Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Darth Trader who wrote (53114)	9/17/1998 9:36:00 PM
From: SJS	Respond to of 58727

Thanks. This is the most important part, the analysis: ______________ The VIX's reaction to a short market pullback of a few hours or a few days is an excellent indicator of how market participants are currently reacting to the market and what they expect will follow. If market weakness is met with an increased demand for puts, the VIX will spike upwards. Such spikes are a telltale sign of fear in the market, which is a very healthy and bullish sign for contrarians, as speculators will tend to buy puts after they have sold out of their long positions. This often signals an end to short-term selling pressure. If the VIX does not increase on a pullback, it signals that the public is meeting the market downturn with complacency and has expectations of a quick recovery. In these cases, there is often more downturn to follow. As such, the VIX plays a key role in our ability to predict future market performance. _____________________ Now, I have to watch the VIX and correlate this information with it's movements.