Originally Posted by utrecht
I didnt say I was out of the market. I was responding to 2B who wanted to compare somethng like this:
Buy and hold SP500 from Jan2000-Dec-2007....compared to
Buy SP500 anytime after Jan2000 only when VIX oes over 30 and sell when VIX is less than 20 (or 17..or whatever).
At least thats what I think he meant and if so, the second scenario will have you totally out of the market alot of the time.
I was just questioning whether the VIX provided value as a market timing tool. Just looking for data.
As for todays rally, we were getting pounded down again when an announcement came out that there is a "resolution trust like" agency planned to be created to deal with the current credit crisis.
I'm sure if this really breaks the credit crunch the pundits will point to yesterday as the "capitulation." I'd say the rules may have changed today.