Sunday, February 12, 2012

12 Feb 2012

I know a lot of people think that VIX is rigged along with every thing else so they don't bother to look at VIX.  VIX has remained mysteriously higher than previous lows despite this relentless rally. 


Yes, it did touch the long-running low yellow line briefly, but for all intents and purposes the majority of the prices stayed above the slightly ascending white line. 

But, maybe it shows up better here. 
As you can see in 2007/2008, this existed for a long time before prices really caught up.  It also helped create a divergence near the March 09 bottom but in the opposite direction. Now, price is substantially higher than the May 2010 peak, but $SPX in terms of $VIX (green line) is down from that point.  You can also look closely and see examples of this in shorter time frames.  See the May 10, Feb 11, and July 11 tops where price stayed elevated a bit longer than the ratio. 

No comments:

Post a Comment