VIX trade ideas
VIXThe VIX (Volatility Index), also known as the CBOE Volatility Index, measures the market’s expectation of volatility over the next 30 days. It is often referred to as the “fear gauge” of the stock market because it tends to rise during periods of uncertainty or market turbulence.
Key Points About the VIX:
1. Calculation: Derived from the prices of S&P 500 Index (SPX) options, the VIX reflects expected price fluctuations (volatility) in the SPX.
2. Interpretation:
• Low VIX (< 20): Indicates market stability and low fear. Investors are confident.
• High VIX (> 30): Suggests high uncertainty and fear, often during market sell-offs.
3. Trading the VIX:
• You cannot trade the VIX directly, but there are ETFs (e.g., VXX) and futures contracts designed to track its performance.
• It’s often used as a hedge against declining markets.
How It Relates to the Market:
• Inverse Relationship: The VIX typically moves opposite to the SPX500 and other equity markets. When markets drop, VIX rises, and vice versa.
• Sentiment Gauge: A spike in the VIX signals that traders expect larger price swings, which could indicate panic or hedging activity.
VIX GOING BACK UPAfter two false routes (the two white lines), we know for sure that VIX is to go up at some point to make up for the gap it made this week.
The only thing is we thought today's opening would be a higher gap compensating the precedent gap, but it kept getting lower and lower.
Now that we're approaching a low KL, there might be a new opportunity for a long entry, stay advised and always put a tight SL on this.
VIX Bull SetupVIX is for experienced traders, and I probably should not be posting this. However, from a BKC charting perspective, it's a great example of how people can become more familiar with my work and why it is so effective.
No newbie should be taking this trade. Just observe and learn from it. Thank you.
Experienced guys and gals you best be quick on the draw! Don't be a dick for a tick! ))
VIX for a blowout Another VIX post which have been received well in the past.
SPX is due for a huge correction and I think this will begin today, alongside all other major indices.
We see a Cup & Handle formation in the making and I believe that this is soon to be confirmed.
It is also resting on a historical trend line as well as various other resistance related metrics.
Target is very conservative with a lot of room to go past the highs in August. Re asses as this moves.
Risk-on Risk-off Market Snapshot, 06/11/2024Market Flips to Risk-on Mode. Game on?
The market has transitioned to a risk-on mode, with investors showing renewed confidence as they seek higher returns in growth-oriented assets.
This shift is evident in the strong upward movement of the S&P 500 (SPX), signaling optimism about economic resilience and corporate earnings potential. A decline in the VIX (Volatility Index), often seen as the “fear gauge,” further reinforces this sentiment, as lower VIX levels indicate reduced market anxiety and volatility expectations.
A Word of Caution
While a risk-on mode presents growth opportunities, it can also increase susceptibility to sudden reversals. Economic and geopolitical conditions remain complex, and any unexpected negative news—such as disappointing economic data, an adverse geopolitical development, or a hawkish shift in central bank policy—could quickly shift sentiment back to risk-off. Investors should maintain a balanced approach, using risk management strategies like setting stop-loss orders or diversifying their portfolios to mitigate potential losses if the market sentiment changes abruptly. In a volatile world, even a risk-on rally can be short-lived.
Disclaimer: This is not financial advice. The information provided is for general informational purposes only and should not be interpreted as financial or investment advice. Always consult with a professional financial advisor before making any investment decisions.
S&P500 vs VIX vs Copper/Gold Ratio. The rally continues.On this chart you can see the Volatility Index against the S&P500 and the Copper/Gold ratio.
We bring this chart to you in order to show you why we think the long term trend on the stock market will be bullish for 2025.
As you can see, VIX had an odd spike in August, when the stock market corrected to some degree.
Since the 2008 crisis, we have had similar spikes on VIX only another two times March 2020 (COVID) and September 2011.
Alls those times, the Copper/Gold ratio bottomed after a long term decline and started to rise.
This rise started also a rally on the S&P500.
Since the market was unphazed in August, we have strong reason to believe that it will extend its gains in 2025 too.
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VIX volatility index fills the gap, what now?#vix the volatility index has filled the gap shown on the chart as red box. Also TVC:VIX index has broken down the bull flag. But, the question is: "A fake down?"
If vix had did this as a fake movement (and only gap filling dump), then a great volatility awaits all markets, just soon.