In the final article on the new features in Option Workbench 2.1, we will be providing some information on Profile Filtering and also discussing some of the Other Enhancements and Bug Fixes.
Now that the Standard & Poors 500 Index ($SPX) has made new intraday and closing highs, joining the other major indices (except NASDAQ), there is once again no overhead resistance. However, increasingly overbought conditions may combine to slow the rally at least temporarily. $SPX has support just above 1670 (last week's lows), then again at 1650 (the June highs), and then at 1625 or so, where it traded for a time early this month.
Wtih the recent release of Option Workbench 2.1 we have planned to publish three blog posts detailing the various new features. In today's article - the second in the series - we will be providing some information on Using Fat Tail Distributions.
We are pleased to announce that Option Workbench 2.1 has been released. There are several new features in this release that improve your control over how probabilities are calculated, analyzed and used by Option Workbench. Below is some information on the new probability analysis.
The feature article deals with the fact that, once again, $VIX is receiving criticism when it really shouldn’t. Most people really don’t understand what $VIX should and shouldn’t be used for. We try to shed some light on the topic, in light of recent articles published on the subject.
The "interpreters" are in charge of this market. They are the people who interpret what they think Bernanke said, and then they act accordingly in the stock market. Frankly, I am in the camp that Bernanke has not changed his message at all -- he has consistently said that QE will remain in force until economic conditions improve (and there is no improvement -- at least in the indicators he is watching).
There are always critics sniping at $VIX, but they are usually fringe players – often with an axe to grind, such as promoting their own version of volatility calculation or something like that. But recently, the criticism has grown much larger and is coming from the center of the investment landscape.
What happened yesterday is relatively unimportant. It’s what’s happening tonight that is the big story. Yesterday, the market temporized while waiting for the FOMC minutes, and then it didn’t do much after the minutes were released, either. However, Bernanke spoke after the close, and the market is interpreting his comments as indicative of the fact that QE is just fine, and tapering won’t occur anytime soon.
We have two great educational webinars coming up next week -- one by McMillan Analysis Corp. founder and president Larry McMillan, and the other by Director of Corporate Services and head mentoring instructor Stan Freifeld.
