VXX trade ideas
VIX soars after hitting levels unseen since November 2019After returning to a level unseen since November 2019, the Volatility S&P 500 Index (VIX) soared nearly 30% within a matter of seven days. In the process, it broke above the resistance indicated by the lower bound of the fan pattern that we have been observing since late December 2023. On top of that, yesterday, VIX formed an opening gap, and today another one.
Illustration 1.01
Above is the daily graph of the Volatility S&P 500 Index (VIX). The yellow arrow indicates a breakout through the lower bound of the fan pattern, acting previously as resistance and now as support.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
I don't want to be pessimistic, but caution would be good!The Volatility Index of the S&P 500 (VIX) is a very good indicator of reversals in the S&P.
- If the red trend line is broken, the trend can change.
- The VIX has reached a new all-time low since 2019.
- On the 3-line indicator, the mid-trend and long-trend lines crossed bullish, which means the VIX can go up and will send the S&P down (orange line).
- It shows a rare bullish signal on the chart, which is bearish for the S&P.
If the VIX reverses, we could see a situation similar to December 2021.
I don't want to be pessimistic, but caution is advisable.
VIX Paths Moving ForwardWe got a nice volatility spike today and more pressure from the ever rising treasury yields. We coukd see a higher VIX spike soon if it doesn't get shut down at resistance shortly above.
I typically prefer to use VX instead of VIX, but VIZ can be good sometimes. People say you can't use TA on VIX and I disagree. However, TA on VX is typically better than on VIX. Should be watching both.
Schiff show: VIX gap filled.Volatility is near record lows. Low VIX is often associated with market tops. 0day options have been pushing VIX down further than normal though. Judging from the many solid candles on the monthly chart, the month often closes near tops and bottoms. So there should be plenty of time. The writing is on the wall. But it would not be surprising to see stock prices remain elevated, with correspondingly low VIX, until June 3 or later.
Caption: Using the auto pitchfork indicator and choosing Schiff pitchfork reveals alignment with the gap.
What happens when the VIX peaks above 20?Tom Bowley always reminds traders and investors to watch out when the VIX spikes above 20. I looked at what happened to the SPY since the GFC whenever the VIX moved up above 20 (with gusto) on a monthly basis and the SPY percentage change from that moment until the bottom.
VIX TrajectoriesFor the VIX we are in load up zone, whether for speculation or hedging.
I've mentioned before I think 12-12.50s come with bounces to 18-19 until we get the next rate reduction that pushes us towards sub $12, that's been my bias, next leg down could be it but i assign the following:
85% probability $12 holds we go to $17/$18
10% we dip to $10-$11
5% something in the middle.
VIX to $17 Soon for another key trend line resistance test!Ensure you hedge your trades and know your maximum loss and profit, especially if you have limited funds to dollar cost average or are trading options.
For informational and educational purposes only, I prefer buying laddered call options on UVIX (1.5x), VXX (1x), and UVXY (2x) at sub-$13 levels over 2-4 weeks that align with my long "risk on" call expirations. This way, I can sell the pops and use the proceeds to add to my most committed "risk on" positions.
Good luck!
@candlestickninjatv
VIX Hits Target, Preparing for the Next Leg UpThe VIX has reached my 12.50-13 target and is poised to hit 12-12.25 today or tomorrow. Following this, I anticipate a bullish diamond pattern forming. This setup signals the next leg up, prompting me to go long on UVIX. Within the next month, I'm targeting the 17-18 zone for UVIX. Stay tuned for strategic entry points.
VIX back to $20?With economists celebrating the "goldilocks economy" and VIX breaking below the lower bound of the pattern, the big question lingers: "Is this another fakeout before resurgence to $20?"
Illustration 1.01
The yellow arrow indicates a breakout below the lower bound of the pattern we have been observing since its early formation.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
VIX = ONE MORE PUSH HIGHERWould like to have seen that gap filled at $13.10
But added June 18th $15 calls today. Couldn't wait for
the buy confirmation.
Will add more the next few weeks on any weakness.
VIX will pop by late May/early June.
Thesis = will drop with weekly chart of bear flag on AMEX:SPY
Good Luck Yo
Market Cycles Buy and Sell Zones Benner's Prophecies on Volatil Benner's Prophecies on Volatility
The chart you've shared uses a combination of historical data and predictive models, specifically focusing on Benner's prophecies, to suggest when to buy and sell in the market. Here's a simplified explanation based on what your chart illustrates:
Buy Zones
Buy zones are indicated by the green shaded areas. These are periods where the historical data or predictive models suggest that market volatility is low and prices may be at a trough or more stable, making it potentially a good time to purchase assets. According to your chart, upcoming buy zones are highlighted with phrases like "YES YES BUY ZONE," suggesting a strong endorsement for buying during these periods.
Sell Zones
Sell zones are shown in red shaded areas. These suggest times when the market is potentially at a peak or there's high volatility, indicating that it might be a wise decision to sell your holdings to either take profits or avoid a downturn. The chart marks specific years like 2019, 2035, and other highlighted points with "SELL" to denote these periods.
Benner’s Prophecies
Benner's prophecies are a historical predictive model that uses past market cycles to forecast future ups and downs. Samuel Benner was a farmer turned market forecaster who, after experiencing financial loss in the 1870s, developed a cyclical theory based on pig iron production cycles. His broader application to financial markets aims to predict high and low years based largely on economic cycles. According to Benner’s cycles, markets would experience a patterned recurrence in peaks and troughs, which are used in your chart to predict future market movements.
How to Use This Chart for Trading Decisions:
Identify the Zones: Look at the current year and compare it to the chart to see if it falls within a green or red zone.
Consider Market Conditions: Even though the chart provides years labeled as buy or sell, always consider current market conditions, news, and other analyses before making a decision.
Plan Accordingly: If you are nearing a red zone, plan to review your investments and possibly take profits or reduce exposure. Conversely, in a green zone, you might look for undervalued investments to acquire.
Monitor Regularly: Market conditions can change rapidly, and while historical models provide a guide, they are not infallible. Regular monitoring and adjustment of your strategies are crucial.
By understanding these elements, you can use the chart to make more informed decisions about when to buy and sell based on historical patterns and predicted future market behavior.
VIX front running a market correction at 12.5Since Dec 2023, every time the VIX reaches the 12.5 vicinity it has led to a market correction and a spike up again in volatility. 12.5 is acting as a base in this market condition. The DOW has been overlaid and horizontal lines drawn where corrections have been observed as the VIX reaches 12.5 zone. Will we see a market correction this week?
VIX to BLOW OUT?VIX has been consolidating for over a year now in a wedge and has so far respected the diagonal resistance line extremely well.
Markets have been on full boil non stop and the water is soon to run out IMO.
We haven't had a serious correction for over a year now too and I believe the time is now.
There's two scenarios, my first aim is to reach 21 and from there reassess the markets and potentially aim for 28 following a correction.
VIX Vix has been all but forgotten in an election year and a democrat controlled fiscal policy... Good fundamental and/or technical entry point as Fed's Kashkari hints at no rate cuts at all. Early this year markets priced in 6 25 basis point cuts now odds less than 50% we get only three. Jobs report in 2.5 hrs. will be the tell, be pre4pared to act if we have a downside surprise!
Note: Not Advice. For advice, ask an advisor of an adviser. Past does not equal future.