Thursday, March 26, 2009

VIX Chart - Possible Signal


Well lookie here. Another situation with the VIX and the PCR bottoming in unison. The last 5 times this has happened in 2009, the market reversed. See my post from last week for data around this. But there are two questions:

1. Will the reversal happen immediately or delay a day like last time?
2. How big is the reversal. The last time it was must smaller than the previous 4 times.

While the chart shows them bottoming in unison, we really don't know if they are a bottom yet. Both could move down again tomorrow while market rises. Wait for confirmation. Unfortunately, confirmation would be the VIX at 43, which may be halfway done with the reversal.

5 comments:

  1. I am waiting for 38-39 myself. Or possibly when we hit 850 on the SPX. 870s is looking increasingly distant.

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  2. If you know it will go up to 45 and you are waiting/hoping for it to go down 1 or 2 pts more, why not buy half a load now?

    also, historically, the VIX goes up on Mondays.

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  3. http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_U/threadview?m=tm&bn=58157&tid=376191&mid=376191&tof=1&frt=1


    The Great Flaw of the Giethner plan

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