VXX trade ideas
VIX BEARS WILL DOMINATE THE MARKET|SHORT
Hello,Friends!
The BB upper band is nearby so VIX is in the overbought territory. Thus, despite the uptrend on the 1W timeframe I think that we will see a bearish reaction from the resistance line above and a move down towards the target at around 14.08.
✅LIKE AND COMMENT MY IDEAS✅
Time Makes Fools Of Us All...This statement is especially true if you look at the leftover Chinese
food in my refridgerator.
Looking to go long around 08/14 to 08/16 - it may fill that open gap below
at $14.15 before it resumes it's moon journey.
Eyeballing the 09/20 $14.50 to $15 calls - depending where we are at on the
aforementioned days. Remember 08/16 is FOMC.
Really no clear signal at the moment and I am not trusting this market right
now. Just like how I do not trust eating that Kung Pow chicken in my fridge.
GLTA
Go Vix Go!Stalin said that imposing Communism on Roman Catholic Poland was as absurd as putting a saddle on a cow.
Can't stop thinking about Black Sea blockade
Can't stop thinking about Poland and Lithuania amassing at the border
Can't stop thinking about Ukraine/Russia war escalation
Can't stop thinking about Hunter Biden's huge penis
Loaded - 08/16 $14 calls
Should I watch Oppenheimer or Barbie?F*ck that - gonna watch the Vix buy signal on the weekly.
Usually lasts for 2 to 4 weeks. Lets see what happens by Friday.
Fitch downgraded US Credit because of Jan 6th Riots?
Theres like a 100 more things on top of that incident
that I can think of that warrants a downgrade.....
Until the VIX breaks this level, it remains range-boundA quick look at our VIX chart shows us that we are range-bound since June. Exactly, as I expected and have stated numerous times in past posts. But now, with the U.S. credit rating downgrade, fear has spiked. Will we break this range and move up? We could, yes. But to do so, we need the VIX to move above that 15.94 level with confirmation. As of today, the VIX can still be technically classified as range-bound at all time 2-year lows. Of course, when the VIX remains low, the market will remain relatively positive. This is bullish.
Stay tuned for further updates here.
Stew
VIX - THE RECESSION INEVITABLE?The "VIX = Volatility Index S&P500" has predicted us in the last 3 decades, quite reliable possible "extreme movements".
= Why in the next 2-years such an event could occur, we will take a closer look in the following article.
WHAT IS THE VOLATILITY INDEX S&P500
= Expresses the expected range of fluctuation of the U.S. stock index S&P 500.
= To determine volatility, it measures the distribution of options that run on these stocks.
TABLE OF CONTENTS
- 1st part = VIX
- 2nd part = VIX PROPERTIES + USE
- 3rd part = CURRENT SITUATION
- 4th part = CONCLUSION
PART ONE
"PAST."
If you compare the past of the "VIX" with the S&P500, you will notice that the - 36.47 - mark played / continues to play a very important role.
Every time the "VIX" exceeded the - 36.47 -, there was extreme volatility in the S&P500 and other asset classes.
PAST EXTREME MOVEMENTS .
> 01.10.1998
> 01.10.2008
> 03/02/2020 (near crash)
Why the VIX has such a big impact on the S&P500 and how we can actively factor this into our trading follows in part two.
PART TWO
"VIX CHARACTERISTICS"
The "VIX" provides information on how serious fluctuations could be based on the option volume.
= "VIX" goes up -> Statistically more likely that the S&P500 will fall.
= "VIX" goes down -> Probably that the S&P500 gains slightly.
Additionally, it can be noted that as soon as the "VIX" gets close to - 36.47 - many market participants take profits.
WHY IS THIS SO?
The market has already reached a "VERY VOLATILE point".
> Price - FALLS - fast = SHORT positions will take profits > BUY
> Price - RISES - fast = LONG positions will take profits > SELL
CONSIDERATION OF "VIX" IN TRADING?
"VIX" = Negative correlation to the S&P500 = "VIX" goes up = S&P500 goes down.
= This negative correlation occurs because institutional investors use options to hedge against high volatility (hedge against stocks).
RISING "VIX"
= less liquidity in the stock markets + position reduction = stocks fall
FALLING "VIX"
= More liquidity in the equity markets + position building = equities rise
PART THREE
"CURRENT SITUATION"
> The "CORONA crash" could not make a new HH in the "VIX", which is why this could still be pending at the current view.
= 2020 the market "fell" "35.41%" in the SPX
= 2008 the market "fell" "57.69%" in the SPX
With the technical analysis, I come with the current constellation, to a higher "VIX" value than the 2008 reached.
= which would mean a bigger sell-off.
> Since 2018, we have been testing a "falling resistance line."
= Similar resistance lines resulted in the past when broken, with significant volatility + movement in the S&P500 (= traditional markets).
= The current resistance line has been respected several times, resulting in reactions.
> The "rising resistance line" since 1990 + "the arc" + "the macroeconomic environment", suggest another "VIX" breakout .
> The rising resistance line was tested at the two "extremes" - 01.10.1998 + 01.10.2008 - on.
= this meant, both times, the temporary end of the extreme volatility
= in 2020 we could not reach it, which additionally suggests another "breakout".
> If the price trend continues to consider the direction of the arc, then this leads us to a much higher target than 2008 / ever before.
PART FOUR
CONCLUSION
"If the VIX is high, then it's time to buy, if the VIX is slow, it's time to go"
> Regardless of the outcome of the analysis, anyone who hasn't used the VIX before should now have gained a little insight.
The future looks anything but bright for now, however we can use this time to learn and grow .
The VIX could delay the final decision for another 2-years, which is certainly to the advantage of each of us.
= Despite this still "long" period of time, a decision will be made in the future.
> Let's discuss it in the comments and exchange our perspectives, your view on the whole thing would interest me "burning".
If this idea and explanation has added value to you, I would greatly appreciate a review of it.
Thank you and happy trading!
VIX Massive Long! BUY!
My dear subscribers ,
VIX looks like it will make a good move, and here are the details:
The instrument tests an important psychological level 13.48
Bias - Bullish
Technical Indicators: Supper Trend gives a precise Bullish signal, while Pivot Point HL predicts price changes and potential reversals in the market.
Target - 14.01
About Used Indicators:
Pivot points are a great way to identify areas of support and resistance, but they work best when combined with other kinds of technical analysis
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WISH YOU ALL LUCK
Bought calls yesterday....Bought the 7/26 calls at the $3.50 strike price yesterday.
If you notice, I front-ran the buy signal, that still hasn't
shown up....YET?!?! But this is the VIX, you need to move
quickly.
I may hold, I may sell or I may roll. Not sure yet. Let's
see how the week ends. This call expires on Wednesday
FOMC......soooo
Not sure what I wanna do with this trade yet. Will update.
Straight gambling here - Beep
VIX Will Go Up! Long!
Please, check our technical outlook for VIX.
Time Frame: 2h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is on a crucial zone of demand 13.76.
The oversold market condition in a combination with key structure gives us a relatively strong bullish signal with goal 14.42 level.
P.S
Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback.
Like and subscribe and comment my ideas if you enjoy them!
VIX CHEAT SHEET (IIV) Options StyleHIGH PROFITABILITY OPTIONS TRADING COURSE
options trading cheat sheet recommend using 8 ema for historical data 3 ema for current trend following
6 sec timer .. follow trend use trend channels but convert to protractor operations and follow trend in a protractor manner as if setting a clock.
options trading are not about buying and holding market although you can do the same by setting the timer to longer periods this style of trading is very profitable. Through the perception of volatility and depth of momentum a shorter timer will allow investors to follow trend quicker, this called (building the trend) the spikes will allow you to enter on trades once you have confirmed direction of market and aligned with your signals. if spikes are no good trade is no good. MOMENTUM IS YOUR LIFE VOLATILITY IS DEATH BUT CAN BE MANIPULATED IF USED CORRECTLY.
always recon and technical analysis on assets and underlying assets and identify resistance to counter trends in zone or halt trading until trend continues. Vix and underlying asset will be key to reading what will happen next so keep track of resistance on underlying asset at most.
white ray lines are 15min interval resistant areas.
purple ares are 3 min interval resistant areas
monitors include:
vix - 3 min/5 min chart
Asset-10 sec chart/ 15 sec chart /30sec chart
Underlying asset : 2min chart/3min chart/5 min chart/15 min chart
Timer for payout - 6 secs/ 12 sec / 47 Sec/1:30/1:50/ 2:10.