AI
Wednesday, June 03, 2009 2:18:10 PM
Re: FAZ, $VIX - Relative Values:
I am glad to read that FAZ is getting some love back. The charts below highlight FAZ, $VIX and its reciprocal, as well as relative strength values of FAZ against $SPX and 1/$VIX in the Expansion/Contraction Model format. Note that as $VIX's reciprocal increase, the FAZ/VIX value will act in proportion inversely related to VIX, and that regardless of how powerful the increase in FAZ, a market "panic state" should pull this relative strength expression to lower lows (note the recent high made in the first half of MAY 2009 when FAZ was upsetting traders' expectation):
FAZ - 10-Month, Daily - Geometry Chart:
$VIX - 12-Month, Daily Chart:
VIX Reversal - Declining sharply:
ECM - $SPX, FAZ, FAZ:$SPX - 12-Mo., Daily Chart:
D.
I am glad to read that FAZ is getting some love back. The charts below highlight FAZ, $VIX and its reciprocal, as well as relative strength values of FAZ against $SPX and 1/$VIX in the Expansion/Contraction Model format. Note that as $VIX's reciprocal increase, the FAZ/VIX value will act in proportion inversely related to VIX, and that regardless of how powerful the increase in FAZ, a market "panic state" should pull this relative strength expression to lower lows (note the recent high made in the first half of MAY 2009 when FAZ was upsetting traders' expectation):
FAZ - 10-Month, Daily - Geometry Chart:
$VIX - 12-Month, Daily Chart:
VIX Reversal - Declining sharply:
ECM - $SPX, FAZ, FAZ:$SPX - 12-Mo., Daily Chart:
D.
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