Wednesday, May 20, 2009

VIX Capitulation?

sure looks and feels like one today. Reversal on indexes thus far looks very weak which makes me think there's more bullish will power left.


Anonymous said...

can the vix capitulate? never thought of it that way...

Stewie said...

well, it is a measure of human emotions. look at what happened in oct 2008, similar euphoric spikes only in 2008, they were spikes in fear. now, it feel like MIGHT be seeing a mirror opposite image. we might need to see several of these over several days/weeks before all is said and done. bulls will not go away in one day!

Blue said...

"Berk's rules for the VIX signal:

For a $VIX confirmed signal you need 3 things:
a close outside of the 2.0 Bollinger Band
a close back inside the 2.0 Bollinger Band - this issues the signal
a higher close (sell) or lower close (buy) than the close of the day back inside the 2.0 Bollinger Band - this confirms the signal

Once you get those 3 things a major reversal usually occurs within the next week. The sell signals are far more accurate than the buy signals."

We need a close above 29.05 on the vix tomorrow and we'll have #3

Blog Archive