Kind Words from Terry Laundry, Founder of T Theory

"Parker has sent me what I consider to be the most important refinements to T Theory I have ever received from anyone in an e-mail . . . which he calls Tweaking the 13th Advance Decline T." September 29, 2010

"Parker has sent me a very interesting concept which is the NY Advance Decline line divided by the put-call ratio . . . What he's done is introduce the idea of sentiment." September 15, 2010

"Parker discovered the Money Flow Ts . . . This is something like the Holy Grail in T Theory. You are always looking for something that will help you refine the peak date." October 17, 201

"Money Flow Ts are probably the greatest new thing I have seen in 20 years in terms of time symmetries." December 5, 2010.

Monday, October 11, 2010

$VIX Ratio Low



This video shows how each successive low in the VIX:VXV ratio coincides with an important top shortly thereafter.  The VIX measures 1-month  implied volatility on S&P options, while VXV measures 3-month implied volatility.  Today, the ratio spiked down to 0.79, a 3-year low.  What this means is that the options market participants are complacent about short term implied volatility.  Usually, complacency is a good recipe for a surprise. 
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