Chungst

VIX to VXV Ratio Is Giving a Strong Bearish Signal

You know it's a horrible index at spotting bearish trends when it fails to capture either the MLK / SocGen drop or Bear Stearns scare. In both of these cases, the major indices set trading lows that were not reflected by your VIX:VXV ratio. If it clearly doesn't work (since it fails the common sense test), then you shouldn't use it.

That reminds me, with all the talk about VIX, VXV, etc. I should listen one of my favorite bands, VNV (Nation).