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Vixindex

Close eye on VIX and SP500. Going long the VIXTaking a close look at the behavior of the VIX alongside the S&P 500 has shown me some opportunities to aim for. In particular, when the S&P is posting new all-time highs, looking for the VIX to reach its lower bound. Since the start of the pandemic, the VIX barely kissed the 14 mark a couple months ago and since then, it has stayed above the 16 handle with a quick peak at 15.20 two weeks ago, prior to the small pullback in equities which subsequently would have been a good time to be long VIX as it gapped higher to start the week and subsequently turn around at the 25 handle. What I have found interesting to work with is finding an entry point when the following conditions apply: - S&P at ATH's - VIX at lower bound for a couple of days at least - a week or two since last pullback in stocks. It is clear that the VIX spikes when stocks falter and sentiment is risk-off. This happens quite immediately and can often pre-meditate a pullback in stocks as the index is a reflection of the forward-anticipated volatility of the S&P 500. Consequently, it also takes longer to come back down to its lower bound than it does for stocks to reach their ATH's again. As the volatility in markets tends to diminish at all time highs for a shorter period of time, then the VIX has a chance to reach its lows. These are the moments that I am looking out for. In this chart, I am looking to see the VIX touch the 16 handle at which point I can look to go long. WHERE AND HOW TO GO LONG VIX? There are a few ways to do this. Professionals get their exposure through options on the CBOE, as a hedge against a drop in equities. For mere mortals with more limited access you have two options: VIX ETFs or CFDs. I choose the latter. It is important to note that the VIX CFDs are priced differently and don't coincide exactly with the CBOE VIX chart. However one can use it the same way. When the CBOE VIX meets the criteria, once goes to the CFD and looks for long exposure. A good objective is to place a 1 point stop and a 2 point limit and look for it to run depending on market conditions. The spread is elevated and will cost some $$ at the opening of the position, but the reward from a slight pullback in stocks is noticeable as you can see from this chart Rinse and repeat. One can take it a step further and look to go long the S&P 500 once exited the long VIX trade, and ride it until new ATHs.
TVC:VIXLong
by Kiip_ze_kors
Interesting correlation between S&P 500 and VIXI have noticed this correlation between S&P 500 and Vix. 1. Whenever there is a spike in volatility and volume, that seems to mark the bottom for SPX. 2. This theory seems to be holding for the last 7-8 months. 3. Currently, we are facing a similar kind of situation. The Vix has spiked and the price is tanking. 4. If the theory holds its value, the bottom may be reached soon. 5. However, this is just a probability like every other theory. Hence, we will have to wait and see it out. Disclaimer: This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
CME_MINI:ES1!
by johntradingwick
6
Ponzi Factor Invisible. Hello Trenders and Volatility hunters. Scanning hungry for results, I couldn´t belive my eyes when I saw SP500 Volatility Index. This is unbelivable, the most easy and best ROI with security from Feds in the package included, in my best knowledge. Here is hidden the "millionaire gentleman club" , wonderful. I would appreciate every tip as a newbie. The chart does not require any clarification, is a "no comment" one. At this point I will say good luck but as you don´t need it I say BE HEALTHY. M.M.M Make Motherfuc.in Money Be wise: don´t work for the money, make your money work for you.
CBOE:VIXLong
by DeFontain
VOLATILITY B WAVENew all-time highs in the market combined with a creeping VIX are cause for some alarm. Inflation hedges/bets seems to be the talk of late with inflation on the rise.. and this is not unwise considering that money supply is off the chart and velocity is sure to pick up... although velocity is not a necessary component of inflation. Remember that the market is forward looking and when something becomes obvious to you, you are are usually late to that fact. I believe volatility is bottoming in this range and is very likely to start the B wave of a larger wedge. I had expected this to begin sooner. If this is indeed a new, larger wedge, then perhaps it's even bigger than I anticipated. I also believe the market is quite a ways off from any major crash like we had in March of 2020...perhaps years out. But that does not mean we will not have sharp drops with periods of volatility.. I tend to think we are nearing that now. Be on the lookout for market noise and flush-outs. There are likely to be some decent buying opportunities made available in many stocks soon. Hold fast.
TVC:VIXLong
by gghsusa
4
When VIX index shows the volatility is predictableLet's go back a decade and observe how the VIX index played out the 2007-2008 financial crisis and the market's recovery. Previous to July 2007, the highest VIX value was $22.58 observed in June 2006 (minuscule compared to what comes next). Then the crisis happened, and VIX became extremely volatile and created a new support level at $16.7. There is various observation here that should be treated as lessons from the past. 1. The market does not magically become stable. It takes time to stabilize the market, attract long term investors and build faith in the success of businesses again. On 29/Dec/2008 week, the VIX went from $47 to $30 which was a $17 drop. It was immediately realized that the market is not ready for a quick recovery and the price increased back sharply to the $57 level ($27 increase). However, the steady, slow drop is not rejected as sharp as previous. A slow price decrease from Mar 2009 to April 2010 (over a year) rejected sharply only at the previous support level. 2. When the support level is shifted or levelled up, it takes time to recover the support level. The VIX went through multiple rejections during a span of 6.6 years to recover the support level. It takes a really long time to bring the support back to the old (stable) level after a market crash. 3. Every time VIX hits the support, you get a golden opportunity to play long VIX with little to no risk. Every time the market hits the support, it goes up again. With a higher margin and tight stop loss, you could have made large profits using VIX. 4. Finally, the quiet period comes after 2013. Stocks are good, the market is predictable and VIX volatility is low. 5. In 2020, we see another market crash, VIX increase to $80.8. This is even higher than the highest of 2007-2008 which was $69.4. At the moment of this analysis, VIX just tested $19.8 and currently selling at $20.08. Mind that the market crash wash only a year ago. I am not going to do the analysis on the 2020-2021 window but here are some questions for you. 1. Has the market recovered too soon? For the past year, VIX established the $21 as its new support level. Can the current bull run of US stocks make sure VIX support at $21 can be broken? Or are we at the edge of an explosive VIX movement? 2. With COVID still affecting the lives, can VIX go back to the good old $12.4 support level? I would say no. There is no chance VIX going past $15 and I sincerely doubt it will go past $18. You have a golden opportunity to buy VIX at an extremely bargain price. Both the risk/reward and probability are in favour of you. Forget Crypto, forget any hot stocks, forget gold. I can't advise you to buy VIX now but I strongly suggest that you should do your own research and consider adding the VIX index to your portfolio.
CBOE:VX1!Long
by titusj
Vix suggesting income Volatility?The signals on the 4 hr chart suggest that volatility on the S&P 500 should spike within the next day or so. Please like and follow for daily posts on various asset classes. Please also share your views on the trading ideas and whether or not you find them to be of any value to you as a trader. Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.
CBOE:VIXShort
by JesseMorgans
3
VILX - VIX ETF 2.25 Volatility - Fibonacci Summer CorrectionI'm thinking to make a nice play on my upcoming correction belief. Only option I have with my broker is VILX, so started looking into it's history. Only makes big money with big crashes / corrections, and I think we have two on the way. Data was so small for the main chart, but looking at the RSI here, some very interested volatility wave patterns. I'm always interested to see if there is fib correlations in dates and movements, and this one took some old school math to show. Very interesting! Soon be time to make a play on this, wish me luck ;)
LSE:VILXShort
by TheDarkEconomist
Positive Correlation between S&P500 and VIX In the last few weeks, weird things are happening. We currently have a positive correlation between the S&P 500 and VIX, basically VIX grows with the S&P500 together. I used 20 days correlation, currently it's around 0.8, and it's quite high. Usually, you expect to see it around -1, and it makes sense. For the last few years, the correlation was above 0 only a handful of times nothing good happened after that. Last few cases of positive correlation: Jan 2018, May 2019, Jan 2020. What do you think? Can that we a sign of new correction? Disclaimer Please remember that past performance may not be indicative of future results. Due to various factors, including changing market conditions, the strategy may no longer perform as good as in historical backtesting. This post and/or the script don’t provide any financial advice.
SP:SPXShort
by QuantNomad
8
ridethepig | VIX Slingshot In Play 📌 Working in public has given us a live example of Volatility expanding in times of a crisis. Here it is usually a swing recap for those following. As you will remember we made good use of the initial tempo in the retreat : The show must go on... in came buyers with the counter attack and no surprises on the timing, covid was simply the trigger. To save the overshoots, we cleared all and even covered some at the 85 highs. 📌 When a deep retrace came into play it has created enough energy for a slingshot. Buyers of volatility are quite happy to exchange here at the lows as they are in full control and holding the bid at 🔑 support. Sellers of vol and the 'everything is back to normal crowds' will be condemned to liquidation. This wave 2 attempt at breaching support which has miserably failed today is a visual example of pinning your opponent. The key point is liquidations. Global Equities are complacent, retail have bought as much as they can. Large hands have cleared, since the Covid chapter II irritates them (from a retracement perspective at the very least). And it will comedown to a massacre in VIX... Seriously it is just as well we are seeing the back of VVIX...that really was a monster. 📌 How and Why these slingshots occur in VIX? When major forces on both sides clash together, it comes down to an exchange. In this case the health crisis cannot be solved via the monetary or fiscal side, shutting down the economy has caused long term repercussions. Especially with the elderly and overshoots on dependencies. In simply terms the older demographics will be forced into using savings to support families, businesses will be more defensive with capital, the issue is not solved with stimulus, it is solved with CONFIDENCE . The policy mistakes here are off the charts and may even cost Trump the election. As usual thanks for keeping the feedback coming 👍 or 👎
Editors' picks
TVC:VIXLong
by ridethepig
18
[TVIX] 1D, 4H, 1H and 30M All Lined Up for ReferenceMostly reference purposes here. What an epic setup. Buy Signals: 1. RSI flipping from buy to sell on the 1D and 4H and holding closely to the sell dashed line in the 4H or 30M 2. OBV trend change, up or down in the 1D or 4H overall but here the 1H and 30M will give quicker signals of the trend change 3. 1D VPT as RSI flipping from buy to sell and 4h holding close to sell dashed line, 1H should hold to buy dashed line at start of uptrend, 30M should be very volatile crossing both dashed lines back and forth frequently. 4. MACD on the 30 and 1H breaking through zero (We've got 3 beautiful waves in both charts that are still waiting on a fourth due anytime *cough*June*cough*), MACD lines on 1D and 4H primed to break up too 5. POC trending 30M>1H>4H>1D (This ones tricky to dial in properly but that's the idea) There's a lot more there, just some zoomed perspective for all the TVIX riders out there.
TLong
by ProfitHarvest
1
KEEPING IT COOL!!! VIX SWING TRADE OPPORTUNITY (6 WEEK HORIZON)Pure technically we have seen the weekly VIX candle breach the Bollinger Band 6 times in the last 11 years with a syringe like pattern (more than 70% upside). In my opinion this pattern happens when people are in panic mode. 5 out of 6 times VIX dropped significantly within 6 weeks. The exception (rectangle shape) is the 2008 crisis. My SL will be set at the top of the syringe 62.37 (approx -25%). With a Risk/reward 1:2 my TP is 23.76 (approx +50%). IMPORTANT NOTE: PAST REWARDS DO NOT ALWAYS REFLECT THE FUTURE and because this may be more like a 2008 style pattern. DO NOT INVEST more than 20% of your free cash and be ready for a martingale ( set an alert and double down in the next huge spike)
CBOE:VIXShort
by nikvo1990
2