The S&P/ASX 200 VIX

posted on February 8th, 2012 by Bellmont Research Team

The S&P/ASX 200 VIX (ASX Code: XVI) is an end-of-day index that reflects the market’s expected volatility in the Australian benchmark equity index, the S&P/ASX 200. The settlement prices for S&P/ASX 200 (XJO) put and call options are used to derive a weighted average of the implied volatility being incorporated into the options. Two maturities are used with the nearby having at least a week until expiry. The volatility of the options closest to maturity is interpolated with that of the options farthest from maturity to arrive at a constant 30 day indication of expected volatility in S&P/ASX 200.1 Read more

The Hidden Strengths of Volume Analysis – Part 2

posted on September 5th, 2011 by Bellmont Research Team

In the last article I discussed two examples of how and why volume can show the changing face of supply and demand. When the order of supply and demand is change we will get a change in market direction, sometimes a significant change in trend or otherwise some degree of retracement of the prior move. We will now continue on from that discussion and show larger periods of transition which can lead to quite substantial turning points in the major trends. These can be easy to identify, but do require some patience. If you did not read the prior article it would now be worth reviewing that before going on. Let’s firstly take a look at AWB Limited. Read more

The Hidden Strengths of Volume Analysis – Part 1

posted on August 4th, 2011 by Bellmont Research Team

The power of correct volume analysis cannot be overlooked. Unfortunately the ability to read volume correctly is not readily discussed or freely available. Off-the-cuff remarks such as, “increased volume on advances is bullish and increased volume on declines is bearish” are bantered around but that’s as far as it goes. The correct use and application of volume can make for some quite startling insights into price action, especially when one is swing trading or leaning against support and resistance points or zones of confluence. Read more

The Changed Nature of the Market & Price Manipulation on the ASX.

posted on February 9th, 2011 by Bellmont Research Team

Traditional forms of technical analysis have been practiced for decades with limited success. Most of the technical analysis methods taught to the public currently have not changed much for many years. The entry points on patterns and trendline breaks are fairly easy to predict and the stop loss calculations most traders use are limited to a few methods. Read more