VXX
#VXX - Further increase ahead?
The short term future on the S&P 500 volatility index VIX, launched by Barclays Bank, is a further increase expected.
The US election is imminent and profit taking and price resetting should therefore come as no surprise.
This should increase volatility very soon.
Greetings from Hannover, Lower Saxony
Stefan Bode
S&P 500 Next Week Expected Move ($107.75)Neutral Call, 4-day trading week with a huge expansion of Expected Move from last week's $62.
Last Week: $62 EM / 5 Days = $12.5/day --> Next Week: $107.75 EM / 4 Days = $27/day
Volatility is like toothpaste; Once it's out of the tube it's hard to put it back in.
The market is seeing a ton of risk in the volatility futures 47 days out for some reason. It's before the election.
The Dollar $DXY is the sleeping elephant in the room.
Enjoy your Labor Day, you earned it.
Best of luck next week,
- RH
[VIX/VXX] Volatility Channel of Profit: The $$$ Ratio!We scaled the entire 3Y Channel of Profit in a single day (that's actually where they fit, not overfitting this one surprisingly) after hanging around the bottom of the channel for a couple weeks.
Anytime we are below this channel, you should be scaling in a volatility position and above this channel you should focus on scaling out your position. For in between we have all the other more precise volatility models for the finer calls.
Also note that breaking above this channel tends to be a good predictor of corrections, which we are teetering on the edge of right now. Good luck Friday.
Let me know your thoughts! Very fun stuff here B).
[VXX/SPX x SPX] Volatilty Ratios: Can We Predict the Future?This seems like as good a place to start as any!
I've been calling for a little more upside tomorrow before sliding back down from there and this magenta line I just laid aligns with where I'd expect this thing to stop. If we break this dam, there's gonna be more waterfall.
Lets watch this playout and measure along the way B).
VXX - Supported at Target and Mooning!! Volatility Increasing VXX hit the target zone called out back in July and has since skyrocketed. Today it ticked my top target and is in the red cloud on the daily. I imagine we see a little pull back here before we press through the cloud and look to go even higher. Volatility is going to sky rocket into the elections. Congrats to all who played this!! And good luck to all who will still!!
“Can’t do TA on the VXX” Lmao, how much would you have made on calls at that bottom support tick if you went long until today?? BS
Secret Chart! - BTC/VIXOne of the most important intermarket relationships in crypto is BTC vs the VIX index. This is one of the tools I utilize weekly to try and position myself correctly in the market. So what does this chart tell us? Let's lay it out in 3 easy steps!
1. Well it has been our guide for upside targets as we went long until the gap filled. Once the gap filled, we took down our BTC exposure (see related idea 1 - taking some risk off).
2. Then we have a classic failure at the multi year trend line. We were watching this carefully. Once the market failed at the resistance, we buy some VXX!
3. Right now, we are looking for exit points. We have exited most of our BTC short (see related idea 2 - flip it upside down). We exited 66% at the 50% retracement. The 61.8% fib retracement looks like a great exit for the rest of the long VXX and short BTC.
Next step is finding BTC entries! We won't know for sure, but it could be around the 61.8 and 72.6 fib levels.
Happy Trading!
[VXX/UVXY] My Wildest Volatility Ratio Chart Yet!Was just playin around with VXX and stumbled upon something neat... I don't fully understand what a VXX/UVXY ratio means exactly yet but boy I see many consistent patterns here and one epic divergence that we're in right now!
Also always remember to check out DIX: squeezemetrics.com
It hasn't been this limp since early 2018, when the first Correction of this megaphone pattern we're in hit. The Divergence area of GEX/DIX is greater than anything we've seen previously aside from again late '17 early '18 and this while shorter in time is far more divergent.
We're quite possibly in the midst of a blowoff top on this massive 6M wedge.
Just some friendly weather data from your local Stock Farmer B).
SPY approaching decade long ascending upper trendlineSPY approaching decade long ascending upper trend-line. Whether you are a bull or a bear, you would agree that there will be strong turbulence approaching this line. Good opportunities for a short scalp.
Target VXX , UVXY, and VIX calls with expiration date a few months out to hedge your positions.
VIX/VIX3M Ratio Chart A favorite ratio of mine has reached the low end of its range.
The sentiment ratio which illustrates complacency and suggests a contrarian stance is warranted.
Like all contrarian metrics, betting on mean reversion typically comes to fruition eventually, but tells you nothing about when that will occur.
That being said, I try to be as 'timely' as possible though when I make alternative posts.
What's Going On?
The market is taking a leap of faith by investors who have a trust in policymakers to
maintain the flow of stimulus, and for things to return to some form of normalcy.
Investors are taking a leap of faith from here, clearing the chasm of economic realities.
Fiscal life-support measures, Stimulus measures, and investor faith that's stopping the
whole thing from unravelling.
What Should I Do?
Be mindful of these charts, and monitor the progression of them.. because if there's
any sign that the narratives supporting investor faith start to dissipate or disappear,
or that faith gets shaken, then we could get a bit of an unravelling here. In the mean
time, Central Banks have our back.
Best,
RH
VIX compressionThe vix has a history of forming explosive price wedges. It wouldn't be a stretch of the imagination to say we're forming a new wedge here. Also, I suspect that we're on the verge of a new upward wave in volatility from here- it might just be a lower high in a new wedge. The market has gotten way ahead of itself and there are just too many new traders piling into popular stocks. They are fish in a barrel and the cork is about to get pulled. The sentiment is absurd and we now have some of the lowest put:call ratio's I've seen in my years of trading (shorts squeezed out). I'm hoping for the market to retrace 50% of the last fed rally but I would be thrilled to see lower lows by Nov-Dec. Take a look at the other chart below on VIX weekly timeframe and notice the very clear cycle lows/highs with the sine wave on stoch/rsi indicator.. We're very close!
VXX/VIX - Looking for move above resistance today?To early to have the latest VX data for the day. However, looking at S&P and NASDAQ outlook for today I am going to say we get a good move to the upside today above the resistance line. If so, then this could setup a new support line and may indicate that VIX is looking for a larger break out later in the week.