Monday, July 7, 2008

VIX:VXV Ratio Approaches Bullish Territory

One of the better indicators over the past 7 ½ months has been the VIX:VXV ratio, which, as the chart below shows, has been quite accurate in calling tops and bottoms in the market following the VXV launch back in November 2007 and I whose application I pioneered soon thereafter. I mention this because the last time the VIX:VXV ratio gave a clear bullish signal was at the mid-March bottom; and the ratio is coming close to another VIX:VXV bullish signal today.

For more information on the VIX:VXV ratio, try The VIX, VXV and Volatility Expectations. For more information about the VXV, try Thinking About the VXV.


Anonymous said...

Bill, curious that i got the ratio of 1.042 at (yes i did the same $vix:$vxv for the sharpchart.) anything different from yours that i need to know???

thanks in advance, and yours and Quantifiable Edges are my two favorite stock market blogs.


Anonymous said...

Maybe time
Bill's Charts: 07-Jul-2008 01:03pm
Close 07-Jul-2008: 1,04

Bill Luby said...

Looks like a timing issue.

I show a high of 1.0626 yesterday -- and a low of 1.0222 earlier in the day.

As of this morning (Tuesday), the ratio appears to be hovering around 1.04.

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
Web Analytics