An SPX Vortex Suggests a Market-Wide Cyclone
Updated
Found this little technical abnormality by accident. That's a pretty severe deviation from the VI - historical mean.
See Below for Logic Listed in Black Box:
1) IF (VI -) is currently reading an extreme all-time low
2) THEN Prob(mean reversion) is very high
3) IF (VI +) is also at all-time low
AND (VI +) broke down from 20-year sideways channel
AND (VI -) mean reverts back above sideways channel
THEN 500-Day Bearish Crossover is Highly Likely
4) IF Bearish crossover occurs
THEN History suggests a storm is coming
- Stormish Pig
SPX
VIX
See Below for Logic Listed in Black Box:
1) IF (VI -) is currently reading an extreme all-time low
2) THEN Prob(mean reversion) is very high
3) IF (VI +) is also at all-time low
AND (VI +) broke down from 20-year sideways channel
AND (VI -) mean reverts back above sideways channel
THEN 500-Day Bearish Crossover is Highly Likely
4) IF Bearish crossover occurs
THEN History suggests a storm is coming
- Stormish Pig
SPXVIXTrade active
Indicator is now very close to a VI - crossover. Wear a raincoat if you go outside.
Trade active
As per the harvester of profits' request:Note
^The 186-Day is preferred to the 500-Day. Crossover is in today and a follow thru tomorrow will mean that [still-solvent] shorts will rain down on bulls in a not-so-insignificant way.
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