Friday, October 17, 2008

1,000 Point Trading Range for the S&P500?

The VIX at 70 suggests a daily volatility (standard deviation of returns) of 4.4% ..

If the S&P500 "settles down" into a range between 1000 and 900 (currently at 950), by entering into a joint economic and 'banking' "show-me mode", that suggests, believe it or not, that the VIX is a little ... low.


At least, so far, we've seen no indications whatsoever of any specialist firms on the brink of failure, etc.

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