Monday, March 16, 2009

Solace For This Week's Bears



Last week was an unusual case where both the VIX and the S&P 500 both were net gainers by Friday.

A poster on xTrends linked to the above research which analyzed the market's performance following such *divergent* weeks in recent history.

[*Divergent* because the market and the implied option volatility usually move inversely.]

Click the graphic for a sharper image. And note that 4 days after such an occurence, the S&P 500 was down 17 out of 18 instances - and often quite substantially.

4 comments:

Anonymous said...

Keep Obama on that podium and lets ask him about his vision for America. Faz needs to rally...I am down to my last hair follicles. C-Nut, did you buy in the 30's at all?
Kfell

CaptiousNut said...

I think 41 or so was my last substantial buy.

Every single one of my trades is somewhere on the blog.

west coast vc guy said...

Isn't this the same thing I said last week? No I haven't been drinking. I don't remember which post I said it but I was commenting on your thong.

CaptiousNut said...

Really drunk last night, huh?

I don't know how comfortable I am being whom you *drunk dial*.

I really hope you try your unscrupulous female friends first.

Happy Saint Patrick's Day!