QQQ and its price relative to the VIX

M

moise

I have been developing this system for a while and seems to get very good results ;

1) get a chart of QQQ
2 below get a price relative of QQQ to the VIX

(try this website if you do not have it on your trading software ;
www.stockcharts.com)

3) the price relative usually compares your equity to the SP500 ;
change it to $VIX

enjoy !


below is my homepage
 
not sure what you are trying to say here exactly....but in any case why would you be using the $VIX with the QQQ when they have their own volatility index (the $VXN)?
 
ok, now I see what you mean. But why are you combining the $VIX a measure of volatility in S&P100 to the QQQ....makes no sense really. Why not use $VXN? you know apples to apples...

In any case, it would probable give a similar result.

BTW, its nice to see coffee finally breaking out (I´ve been a bull for some time) Where do you get commodity charts?
 
Originally posted by Babak
ok, now I see what you mean. But why are you combining the $VIX a measure of volatility in S&P100 to the QQQ....makes no sense really. Why not use $VXN? you know apples to apples...
More...

I was wondering the same thing. :confused:
 
All this comparison shows is that "something" will likely happen when volatility (albeit of the wrong instrument, but fortunately somewhat correlated) makes new lows, since it's likely to increase again and the underlying instrument (i.e. the NDX) is likely to move in a more volatile way.

I don't understand how this particular relationship (alone) can predict an upward movement. Look at the March-April 2000 charts, where the NDX collapsed after the VIX (and a back-calculated VXN) had bounced off their lows. I picked this because it was an easy one to find, but I'm sure there are plenty more.
 
Quote from moise:

I have been developing this system for a while and seems to get very good results ;

1) get a chart of QQQ
2 below get a price relative of QQQ to the VIX

(try this website if you do not have it on your trading software ;
www.stockcharts.com)

3) the price relative usually compares your equity to the SP500 ;
change it to $VIX

enjoy !

Does this still work??
(Don't find the rel. charts at Stockcharts

Thanks

below is my homepage
More...
 
Quote from moise:

I have been developing this system for a while and seems to get very good results ;

1) get a chart of QQQ
2 below get a price relative of QQQ to the VIX

(try this website if you do not have it on your trading software ;
www.stockcharts.com)

3) the price relative usually compares your equity to the SP500 ;
change it to $VIX

enjoy !


below is my homepage
More...

~~~~~~~~~~~~~~~~~~~~~

something went wrong.

The quastion is:
does it still work?
(Stockcharts don'T show me the rel.
charts - no idea where it might be)

Thanks
 
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