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TMFAleph1 (95.13)

When Will The Wild Price Swings End?

Recs

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October 27, 2008 – Comments (2) | RELATED TICKERS: XOM , BAC , MSFT

I'll grant you, the current crisis is unusual in its breadth and intensity, forcing us to look back to the Crash of 1929 for reference points. Seven consecutive days of market decline? Never been seen until this month. The worst weekly performance in stock market history? It's all right here, folks.

A lesser-known indicator... [more]

Alex Dumortier (XMFMarathonMan)

2 Comments – Post Your Own

#1) On October 27, 2008 at 2:26 PM, lquadland10 (< 20) wrote:

After they get 4x higher than the last highest one we had.

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#2) On October 27, 2008 at 4:12 PM, TMFAleph1 (95.13) wrote:

Lynda,

Thanks for your comment. I'm curious -- why pick four times the previous high?

The probability that the VIX will breach 180 (4 x 45.74 = 182.96) is virtually zero. Please keep in mind that there is no upward drift component to the VIX (to my knowledge) and that volatility doesn't scale in a linear manner.

Regards,

Alex Dumortier (XMFMarathonMan)

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