Replies to post #97713 on Zeev's Turnips Patch-No Politics (ZEEV)

[Jerry Olson]

well that may be true Justa..i have no argument with that..i watch both indicators...and when they get down to my targets then we'll see...

but i am long and have been for weeks now..and still looking for more upside...with some surprises along the way for the bears<G>

[Justa Werkenstiff]

VXN down 5.8% as I write with the Nasdaq up .32%. If the VXN falls another 29% at this rate (for fun), the Nasdaq will gain a whopping 1.6%!!! But it will yield a VXN of about 26.5 and many longs will celebrate their smarts in calling for the lower VXN.

[pstuartb]

Re: vxn and vix.

I read an interesting article today, that I can't re-post, on what it means when the vix and vxn are dropping hard, while the p/c ratio is rising.

The author suggests that individual investors are so complacent that not only has the buy demand for options decreased, resulting in smaller premiums and lower vix and vxn readings, but J6P is now selling relatively large quantities of cheap puts to market makers, resulting in a rising p/c ratio.