tag:blogger.com,1999:blog-897456774486153841.post4252782262136483126..comments2024-03-25T09:22:22.004-07:00Comments on VIX and More: Late Day Rallies, the SPX and the VIXBill Lubyhttp://www.blogger.com/profile/01241003017364820134noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-897456774486153841.post-6802432319665690182009-05-30T23:23:41.730-07:002009-05-30T23:23:41.730-07:00This is a particularly interesting (and to me conf...This is a particularly interesting (and to me confusing) example of the VIX and SPX negative correlation between the VIX and SPX. As I understand it, the negative correlation results from the fact that market declines are typically sharper than market rises. So the VIX will increase as the market declines or is expected to risk facing a decline. <br /><br />But here, at the end of the day the market moved sharply higher. A sharp move in any direction would seem to suggest that another sharp move (either follow through or reversal) may be in the offing. So why did the VIX decline?Russ Abbotthttps://www.blogger.com/profile/15431389045571531450noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-21987444652961145492009-05-30T21:01:10.072-07:002009-05-30T21:01:10.072-07:00Bill,
Thank you for an excellent, solid, quality b...Bill,<br />Thank you for an excellent, solid, quality blog. I am not sure if this gem is from you or other blogs: "if VIX closes below both MA(10) and MA(21), then VIX will likely gap up the following day." It seems pretty reliable but I would defer to you as the acclaimed VIX expert. Kindest regards,<br />KatyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-70193639407723680922009-05-29T15:35:10.327-07:002009-05-29T15:35:10.327-07:00Bill, this is fascinating as VIX inside baseball (...Bill, this is fascinating as VIX inside baseball (fact not sarcasm). But do you see any actionable conclusion or market indication other than beware of VIX data?Anonymousnoreply@blogger.com