VIX Spike - BIG Crash PendingThe VIX will spike again, nothing to do about it.
Fundamentally, a perfect storm is brewing.
We had/have many events in the markets:
- Covid Pandemic
- Supply Chain Disrupted
- Ukraine Invasion
- Russia Sanctions
- Inflation Spike
- Energy Crisis
- Global Drought
- Interest Rates Hikes
What's next, a full-blown WAR?
Vixspike
Measured Move? Or More?Short the rallies! Every rally is nothing but liquidity grab. You gotta be nuts to go long here, because:
FOMC > more rate hikes 'may be needed' = 'are coming'
Banking crisis. Worse than they let on.
Yield curve inverted. Always preceeds major selloff.
Recession is coming. For all the above. We in 70's economy, stupid!
The Big Dump w/capitulation always comes near the Fed pivot. Next meeting may be the pivot.
Every Bear has finished with VIX >40. This will be no different. Buy when VIX pops and stonk drops.
Could get a measured move, could get a massive dump, I can't see the future, always guessing; GLTA!
Summer BummerRally is done folks. Fascinating how perfectly the 21 April bars pattern fits onto the weak retracement rally to right shoulder.
DJI gone off 1K is NOT bullish. SandP down 4%, NQ just tanked > QQQ gave up 15 bucks in a day. Can you say CRASH?!
Yet I still see folks putting out ideas about new rallies to test ATH. Buying this 'dip' will only disappoint, lol. Do not be a bagholder!
So many talking about "where it goes now the bottom is in" is pure delusion. This is a BEAR Market. Bottom is NOT in.
Possible local Low in October? How long it takes and where the final low comes is pure guesswork. Might be... April?!
Worst is yet to come IMO. Gotta have monster gaps down, trip limitdown halts, -3K days with true capitulation, VIX spike.
This is NOT a good time to invest in risk assets folks. If you are not a shortseller then GTFO this nutty market.
Big boys WILL take most or all of your money if you try to buy this beast.
Vix could have one last spikeThe VIX could have one last spike left in it before it settles down for this secular bull market run. When it settles down it should settle below the '20s but until then a potential catalyst for another spike could be the June 10th CPI release or if a member of the Fed mentions tapering. If numbers come in hotter than expected again, there could be a frantic sell-off accompanied by a spike in the fear index as people worry it is non-transitory.
I am still overall bullish on the market since we are in a secular bull market but corrections are normal, healthy, and necessary in order for the market to take the next leg higher. BMO came out with a year-end target on the S&P of 4500. Some projections show that inflation could run hot for 6 months, which would be transitory. As for the damage it could do to the underlying economy, that is unknown. As for equity, stocks are a natural inflation hedge.
Vix beginning upward trendAs markets churn sideways with increasing uncertainty based on a potential correction and non-transitory inflation has caused the vix to break its' downward trend.
Play the vix through VXX or UVXY. VXX is 1x levered, UVXY is 1.5x levered. Gives you volatility protection to varying degrees depending on risk tolerance.