During this time, we are witnessing to a surge in volatility. Spreads on VIX are becoming interesting. I wouldn't consider the first deliveries as we do not yet know when this period of fear on the financial markets will end.
The spread I propose is VXK20-VXM20 (to sell). As we can see from the chart, the spread has turned into an always stronger backwardation...
Vix furtues spreads and stocks above 20day lows.. a good point to mark the end of the market drop by spoting divergence between price index and vix spreads or stocks above 20days lows
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The VIX has broken a long-term supporting trend line and this might indicate that the much-anticipated correction is going to be an inversion and bullish continuation. If the S&P500 can breakout above the upper resistance trend lines on the weekly chart, it might just fool everyone again.
This would invalidate my prior short sale plan. And breaking this trend...
There is no catalyst yet for a reversal on the VIX. However, we aren't far away from a long term supply area at the beginning of the year. While I expect more bullish movement, the supply line is where it could get interesting and reverse. We would need to see less demand volume and rejection of highs at this level to consider a change in direction. That said,...
Trading VIX since the break-out on Oct 4th hasn't been easier.
WHY
8 week channel
perfect BB enveloping
clear VP matching
Action to take
trade on daily chart
have your SL sit aside channel
S&P500 VIX Futures have broken to the upside and breached the downward trend line in place since 2-April-2018. I am looking at the iPath VXX to take advantage of a potential upside move. With Gold also looking to break to the upside, this could provide an additional hedge.
