General Trading Chat

Nish

Well-Known Member
Bouncer. Please explain using a "for dummies" version :)
OK ! In Simple Dummys Language :

1) Sell in May and Go Away ! :)


In a little more Technical terms:

2) Though N and IVix movements are inter-related, but MORE predominent and somewhat reliable relationship in IVix is observed on DOWN side momentum of N rather than while N going upward !

3) And since currently Pandemic wave is in full force along with rising inflation in USA, so IVix has become somewhat UN-CERTAIN and Un-Reliable on Day-to-Day basis!

4) And even if IVix cools-off some day, it hardly benefit to CE buyers or PE bauyers because of point 2 and 3 mentioned above !

The charts tries to explain it ! Pl observe falling RVI ( Relative Volatility Index ) and falling N relationship perticularly in May-2020 and now in May-2-21.

Those more interested in detailed study of IVix can see this:
https://www.researchgate.net/public...d_Facts_and_its_Relationship_with_Nifty_Index


View strictly for STUDY PURPOSE !
 

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