The VIX referred to in the article is now VXO. There is now a new VIX, but I can't remember the reason for the change.
VXO behaves like RSI, the readings can remain overbought or oversold for quite a while without a reversal. 21stCenturyAlert follow VXO and have been predicting an S&P downturn as the VXO has been deeply oversold for weeks. For the sake of my Shorts, I hope it comes soon!
regards, George
VXO behaves like RSI, the readings can remain overbought or oversold for quite a while without a reversal. 21stCenturyAlert follow VXO and have been predicting an S&P downturn as the VXO has been deeply oversold for weeks. For the sake of my Shorts, I hope it comes soon!
regards, George
An interesting article on how Larry Connors uses the VIX
http://biz.yahoo.com/tm/040204/11209_2.html
Not sure if I have attached the link correctly
regards,
http://biz.yahoo.com/tm/040204/11209_2.html
Not sure if I have attached the link correctly
regards,
china white
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lads - if i may comment - i am an x - spooz option trader (OTC and listed).
For yrs it used to be very simple - u take spooz front-end ATM volatility - and u sell it when it approaches 50, u buy it at 20ish.
My desk made zillions selling vol after 9/11 - on a spike to high 40ies.
and we made a good cut buying it in March 2002 at 20ish (SP 1 yr ATM).
The rules seem to hv changed since then as 20 is decisively taken out. I personally know a cupl of VERY GOOD option traders who lost money (and their jobs) in this mrkt buying vol at dips below 20.
What matters now imo is that descending channel in volatility we r currently in. Watch for break-outs. I wanted to type "break-downs" as well - but where do we get if we break down????
bloody CHF-EUR pair trades at 4.9% volatility, we r not getting their on equities, r we?
For yrs it used to be very simple - u take spooz front-end ATM volatility - and u sell it when it approaches 50, u buy it at 20ish.
My desk made zillions selling vol after 9/11 - on a spike to high 40ies.
and we made a good cut buying it in March 2002 at 20ish (SP 1 yr ATM).
The rules seem to hv changed since then as 20 is decisively taken out. I personally know a cupl of VERY GOOD option traders who lost money (and their jobs) in this mrkt buying vol at dips below 20.
What matters now imo is that descending channel in volatility we r currently in. Watch for break-outs. I wanted to type "break-downs" as well - but where do we get if we break down????
bloody CHF-EUR pair trades at 4.9% volatility, we r not getting their on equities, r we? 