Discussion in 'Technical Analysis' started by Trend Fader, Apr 1, 2004.
Why is the vix up today if the markets are rallying?
Whats so funny?
Why is it up?
Doesnt make any sense?
If you knew anything about the market place, you would be aware of the fact that the CBOE launched VIX Futures last Friday . . . As a result, strategies are being initiated that are having an impact on today's VIX, and in fact will result in relatively "higher" values for the VIX.
This contract is based on the prices of the SPX 500 options, and not the OEX ( SPX 100 ) as it was once before. Market participants could also be purchasing "insurance" during this rally, which would allow for higher VIX numbers, especially with today's announcement of the deletion of EK, IP, and T out of the Dow Jones Industrial Average.
There are 2 of them on esignal... I already new that.. $VIX, $VXO.
Something is not right.. your definition is not valid... anyone else know whats going on?
What do you care about using the VIX anyway?
You obviously have very little knowledge in how volatility is calculated, or how it works as a possible indication of market direction. Face it, you are a "rookie" and the market is once again rallying in your FACE.
Because the vix or vxo is supposed to be down today... we are having a rally across teh board.
What I'm seeing is extremely light trading in this new contract, so I don't see how it would impact the underlying VIX. I don't think Trend Fader's question is out of line at all, and the VIX would seem to be diverging from its normal pattern.
If you are an expert on the subject, then why don't you enlighten us instead of being insulting?
waggie may have an excellent point.
if there were no new VIX futures, a higher VIX today would suggest that traders do not believe the rally. that could suggest further gains.
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