tag:blogger.com,1999:blog-897456774486153841.post8099066089954879586..comments2024-03-29T03:46:10.767-07:00Comments on VIX and More: VXN:QID Ratio Reflects Unusual ComplacencyBill Lubyhttp://www.blogger.com/profile/01241003017364820134noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-897456774486153841.post-14272487364557808152008-09-10T14:45:00.000-07:002008-09-10T14:45:00.000-07:00Hi Bill,I can't find the original message, unforna...Hi Bill,<BR/><BR/>I can't find the original message, unfornately. <BR/><BR/><BR/>"Marty Chenard made an interesting observation about the VIX, and it is available at his Stocktiming website--free stuff. His observation is that if there is institutional selling, then the VIX will not face upward pressure.<BR/><BR/>A simple, but rather elegant statement. So VIX is not just about fear per se, but rather when it acts in seeming incongruence to our expectations (conditions are yucky, but the VIX does not budge), then one explanation is that there is distribution in the market. And...if there is distribution, you are unwinding your position. Unwinding positions do not requiring put hedging."<BR/><BR/>You find this text here: http://theperplexedinvestor.blogspot.com/<BR/><BR/>Thanks for updating your blog with all kinds of interesting!<BR/><BR/>Peter.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-27221472960850581272008-09-10T12:05:00.000-07:002008-09-10T12:05:00.000-07:00Hi Alex,I hear you about the two NASDAQ indices an...Hi Alex,<BR/><BR/>I hear you about the two NASDAQ indices and their differences. The VXN, however, is not a measure of the volatility of the NASDAQ composite index, but of the NASDAQ-100 index.<BR/><BR/>Because it can get confusing at times, I have a summary chart (and post) of the major U.S. volatility indices at <A HREF="http://vixandmore.blogspot.com/2008/08/overview-of-us-volatility-indices.html" REL="nofollow">Overview of the U.S. Volatility Indices</A><BR/><BR/>Cheers,<BR/><BR/>-BillBill Lubyhttps://www.blogger.com/profile/01241003017364820134noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-34470309477443551712008-09-10T11:55:00.000-07:002008-09-10T11:55:00.000-07:00I would be careful comparing the Nasdaq Composite ...I would be careful comparing the Nasdaq Composite volatility to the Nasdaq-100 volatility. Based on this chart:<BR/><BR/>http://stockcharts.com/h-sc/ui?s=$NDX:$COMPQ&p=D&yr=3&mn=0&dy=0&id=p94076655813<BR/><BR/>I would believe the Nasdaq-100 is set to outperform the Nasdaq Composite over the near term. Assuming high levels of "fear" predict future positive performance, we would expect more fear in the Nasdaq-100 then the Nasdaq composite, and thus, your divergence. <BR/><BR/>One possible approach to the current situation is a long Nasdaq-100 short Nasdaq composite trade.Alexhttps://www.blogger.com/profile/03977124474414217398noreply@blogger.com