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Dimension

06/10/09 9:47 AM

#49990 RE: elena_murooni #49985

you have a very good point, will post the dates tonight. As i recall, the nasdaq showed the higher percentage movements, and i believe the s&p showed around 5% or so. i will double check...

One thing i think is certain here is there
is heavy speculation here and it's looks like in the next month or so it will be getting even heavier. The caveat with that is that i think when we see this type of speculation, it can go on for quite some time..as the herd is led to the slaughterhouse...irrational exhuberance may not be as extreme as it could be yet imo and may have more to go.

As for volatility, i actually like that play better than shorting right now...and yes, that would be via options. It may sound odd to say that since a rise in VIX would imply a fall in prices, but i think if you get large up moves (blow off top type activity, and smaller retraces, you will see the vix moving by large percentages on those smaller retraces (i suppose i could study this as well, and i will). In fact, as an example we just had what was called an NR10 day yesterday - that is the narrowest trading range in the past 10 days, and yet the vix moved more than 5%.