4 replies to this topic

[Islander]

Bill Luby at Vix and More has a post that studies a possible timing tool using a ratio of the S&P 500 and the BuyWrite Index (BXM). Basically when it gets to 1.80 -- the S&P 500 turns down. Currently the ratio is 1.8431. Likely a correction to the 1510 area of the S&P5, then nice summer melt up. I will short this ride down. Best Islander.

[Cirrus]

Not near enough statistical data to use something like that yet, IMVHO--it's too new. Perhaps using it as a confirming tool with other stuff but that's about it.

[Islander]

Not near enough statistical data to use something like that yet, IMVHO--it's too new. Perhaps using it as a confirming tool with other stuff but that's about it.

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You are 100% correct, and I do use about ten Indicators and they all show an overbought market, correction prone. The research on the BMX has been going on for some time and the results on the BMX web site are impressive, but limited. Islander

[Russ]

Interesting stuff, thanks for posting.

[eminimee]

I've been using spx:bxm for years...have posted it here several times but noone seemed interested. I use daily, hourly and 15 min. PS: like any other tools...you have to get your own perspective and work it through some personal art.

Edited by Teaparty, 05 June 2007 - 12:13 PM.