Friday, April 3, 2009
VIX Update - Just before Friday Close
Interesting situation taking place. VIX will close near 41 and again tested that 40 trend line. But PCR data is heavy on the Call Side. This will get us back into the scenario of a dual low trend line reversal as it has done every time this scenario has taken place in 2009. But lets see what the close brings to make sure the PCR data stays on the heavy call side.
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Sorry, but what means this "PCR data"?
ReplyDeleteTks in advance
Put Call Ratio
ReplyDeletehttp://www.cboe.com/data/mktstat.aspx
VIX actually closed at 39.70--lowest level since January. Seems to me last time this happened was after a brief rally, after which the market started heading south again. Could be a contrarian indicator of overconfidence setting in.
ReplyDeleteBrian,
ReplyDeleteVIX & PCR are both really low, with VIX finally breaking below 40. Since you've been studying this a lot, are you confident there will be a big down-market Monday? Do you have a target on S&P or SRS?
Thanks.
I am not sure we will be down big monday. VIX is down and PCR is somewhat down. But not as low as it has been recently. So not all in here. I am just holding what I have in puts and SRS and will remain in 60% cash.
ReplyDeleteMake sure you check out Erik's blog on where we are on the VIX. He stole my thunder.
ReplyDelete