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.






3 comments:

Anonymous said...

Bill, curious that i got the ratio of 1.042 at stockcharts.com (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.

Jimmy

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.

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