To: the invisib1e hand; groanup
Don't use the VIX by itself. It can be helpful when taken with other especially volume extremesAlso the fact that the VIX does it's own version of the 'random walk' too. It was down to 16.2 for a half hour and now it's hung up at 16.7. Looking back is easy. Predicting trends is hard.
11 posted on
05/19/2006 7:45:32 AM PDT by
expat_panama
(There are 10 kinds of freepers; them that manage numbers with a computer, and them that don't.)
To: expat_panama
its about extremes...not decimal places and not counting minutes.
13 posted on
05/19/2006 7:55:02 AM PDT by
the invisib1e hand
(It takes courage to live. Hence, the "culture of death...")
To: expat_panama
I like to use it as a contrarian indicator. When it's low and put/call ratios are low, the market may be changing direction from up to down but I have to have confimation from the charts. Taken altogether you can place a high probability on the change.
This happened recently except p/c stayed high. I take this to mean the sell-off may soon terminate.
The good thing about volatility is that it is usually highest when the most people are wrong and lowest when the most people are right or just out of the market period.
15 posted on
05/19/2006 8:14:20 AM PDT by
groanup
(Shred For Ian)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson