Discussion in 'Technical Analysis' started by Trend Fader, Apr 1, 2004.

  1. $20 Billion dollars is indexed to the Dow Jones Industrial Average, and $1.1 Trillion dollars is indexed to the S&P 500.


    What do you think happens to "volatility" when the likes of hugely capitalized stocks like EK, IP, and T are about to be deleted out of the Dow Jones?

    #11     Apr 1, 2004
  2. Over in the Land of NASDAQ, the Volatility Index (^VXN) is down 1.35%, further supporting my argument above.
    #12     Apr 1, 2004
  3. It has nothing to do with the vix futures... all week they have been correlating well except for today.. I dont think it has anything to do with the Dow...something wierd is going on..

    Waggie always insults and thinks he is a smart ass.. but this time something is up.

    #13     Apr 1, 2004
  4. It wouldn't have anything to do with people buying some "cheap" insurance before the Unemployment Number coming out tomorrow, now would it?

    Naaaaaa, that can't be it!

    #14     Apr 1, 2004

  5. U dont know what u are talking about.. last time around it wasnt the same.
    #15     Apr 1, 2004
  6. ig0r


    hey dumb a$$, waggie knows about 100x as much as you about markets and trading, seriously stfu already. VIX measures VOLATILITY. There is a TENDENCY for volatility to go up when spoos is moving down and for vol to go down what spoos is going up. This is a TENDENCY, there have been many cases where high volatility up days have pushed the VIX higher as well

    ADD: one way to interpret this is that bulls are acting nervously (shown through increased volatility) and could mean an end to the rally. JUST MY OPPINION/INTERPRATION, I am a bull, I believe we are in a bull market, my position is currently net short (long puts)
    #16     Apr 1, 2004
  7. No Trend Fader, I'm afraid that once again YOU are the one that doesn't know what he is talking about!

    The fact of the matter is that we just had a 4.4% move off the SPX 1087 low in a matter of a week and it is not that unusual for market participants to purchase some "protection" heading into the biggest of all numbers . . . Go ahead and prove me otherwise.

    #17     Apr 1, 2004
  8. I think the big boys are not buying this rally... anyways.. I am scaling into a pretty big short.
    #18     Apr 1, 2004
  9. Funny how you always talk about the "Big Boys" and what you perceive them as doing in the equity-market.

    Last time I checked, they certainly believed in support at SPX 1087 and have a nice 4.4% gain under their belts in a very short amount of time. For them to be purchasing some "cheap" insurance at this point is not out of the unusual.

    In the meantime, you still have no understanding of what the VIX means, or how it works.

    Go figure.
    #19     Apr 1, 2004
  10. Vol NEVER comes in a day ahead of the Employment number, I'm suprised the vix isn't up more.

    #20     Apr 1, 2004