Replies to post #6983 on The Black Box

[Alex G]

i just ran across that myself, he makes some very excellent points

here's an interesting take on the recent VIX action from Mike Drakulich-

We have seen in recent days a virtual "mini crash" in
the Volatility indices, going to 3-5 year extremes, yet price goes nowhere,
the "bang for the Vixes" is pathetic, and that IMO is not a good sign at
all. Let me give you an example, on Oct 7 the S&P closed at 1039 and Vix
was 19.41, yesterday the S&P closed at 1046 and VIX(new Vix) closed at
16.55! "New VIX" actually hit the lowest level since Nov of 1996 YESTERDAY.
Now if Vix had seen that large drop and price and technical action were
advancing strongly, then that would be Bullish action, but the opposite IMO
has occurred, and that in my view is bearish/topping action. And Carl
Swenlin's NYSE ITBM crossed yesterday and gave a sell signal, I really
would like to see two days in a row on that sell, to confirm it. And the
NYSE McOsi remains below the zero line now for 2 days, now a move below
recent lows made on Friday, which is one strong down breadth day away,
would increase the odds a lot that a large decline is underway.
There have been all manor of technical divergences into recent rally
highs. And GE topped way back on 9-18 and has moved sharply lower while
other indices eke out new highs, GE often does this at important market
highs. Another key stock is WMT, it also has not made a higher high since
Sep 4th! Now, why aren't these huge behemoths that really represent the
economy rallying and making new highs?"

[sylvester80]

Thanks Chris and very useful as always. You are a star! :)