Bill Luby submits: I consider the VIX:VXV ratio to be an indicator in the making. Since the VXV
is only six months old it is still too early to give it the robust
indicator seal of approval, but that doesn’t mean you shouldn’t pay
attention to it.
Looking
at the chart below (click to enlarge), the only previous time the VIX:VXV ratio gave a
bearish signal comparable to the current one was just as the markets
were about to move down in dramatic fashion from late December to late
January. Complete Story » ...