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.


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?

CaptiousNut said...

I think 41 or so was my last substantial buy.

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

Anonymous 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!