Vix Breaking new ground

jrs3 · Oct 21, 2003

Old buy sell readings may be a thing of the past.

jem · Oct 21, 2003

I no longer subscribe to trading markets have larry connors dozen or so vix reversal systems been triggering and wrong. If so what is he saying about that.

waggie945 · Oct 21, 2003

As I have suggested on several other threads regarding this topic, it is quite possible that the Storm of Volatility has been over for the past 6 months or so, and that we are heading back to LOWER "historical" levels.

electron · Oct 21, 2003

Quote from jem:

I no longer subscribe to trading markets have larry connors dozen or so vix reversal systems been triggering and wrong. If so what is he saying about that.

VIX just like any other indicator (such as stochastics, for instance) can stay at extreme levels for a while, especially in a strongly trending market. The trend is your friend, catching tops or bottoms might boost your ego from time to time, but if you really need this, you have a problem.

Son of a Gann · Oct 21, 2003

vix is being calculated differently now it is no longer follows same data so you have to adjust to new readings.

Son of a Gann · Oct 21, 2003

check this out

http://www.elitetrader.com/vb/showthread.php?s=&threadid=23427

PoundTheRock · Oct 22, 2003

Quote from waggie945:

As I have suggested on several other threads regarding this topic, it is quite possible that the Storm of Volatility has been over for the past 6 months or so, and that we are heading back to LOWER "historical" levels.

Stay tuned for a massive selloff as early as oh say... October 22nd.

kserra · Oct 22, 2003

I don't know much about the vix but I have seen larry connors say on many occasions that it is not the current level of the vix that matters, it is the level of the vix in relation to whatever moving average he uses for his systems.

TSOKAKIS · Oct 22, 2003

Quote from jrs3:

Old buy sell readings may be a thing of the past.

VIX indications were quite reliable over the bearish period 2000, 2001, 2002.
For this year it is nearly useless [if we see it as a contrarian indicator]

dgabriel · Oct 22, 2003

The VIX displays greater volatility (indicating greater fluctuation in sp100 or sp500 option premium) in bear markets than in bull markets. As the market has been in an uptrend since march, what the VIX presumes to measure on a derivative basis - investor nervouseness - has been at a reduced level.

The VIX level has been confirming the bull mode.

The old VIX I beleive now is VXO, and it is still being measured.

TradingMarkets writers trot the VIX out in their commentaries but that is because they are selling it in Conners' package as a tool of analysis.

No indicator is completely reliable as a standalone.

Vix Breaking new ground

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