VXX trade ideas
What Does VIX Tell Us ?The VIX pattern in yellow lines signals a high level of fear or stress in the stock market likely ahead of us, it appears we might have toped on many major indexes as well as Bitcoin. With huge uncertainty regarding big tech earnings and FOMC meeting in the following days Vix looks like a buyable dip. Specially if we borrow Elliot Wave rules this pattern looks valid, given how well i know them, this particular pattern could go right 80+ percent of time.
" This idea could turnout completely wrong "
Do your own DD
$Vix - BreakoutYeah bix is actually broken as heck, not really being used properly anymore as the big guys have found other sources of buying/selling volatility. Vix is being used only intermittently now whenever other sources are not available.
That being said, i think the Vix is braking out. I wouldn't touch it though due to the reasons i mentioned above. I've opted into buying SQQQ instead which is still well in use.
VIX: Another Warning Sign!Hello friends, today you can review the technical analysis idea on a 1M linear scale chart for the Volatility S&P 500 Index (VIX).
In this chart, you can see the VIX moving along a support trendline. When the VIX spikes upwards that means the markets (specifically S&P 500; generally all markets) start to move downwards. Every few years the VIX starts to slowly move upwards on a new support and resistance trend line before coming back down to the bottom support line. The current structure of the VIX looks very similar to the formation of the Great Recession so I show that on the chart as a possibility. I also note two support and resistance lines which the VIX could move on as it moves higher. Lastly noted is the RSI which is moving up a support line. This is a monthly chart so have some patience.
I may be completely wrong with the prediction of the VIX moving higher, but with the inflation issue, global economic condition, stock markets crashing, companies preparing for a downturn, interest rates moving higher, the US Dollar Index (DXY) moving higher and crypto market crashing, I would assume my prediction may be on point.
Click on the chart below on why I exited the crypto and stock market in December 2021:
If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below.
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research! #cryptopickk
VixSince January there hasn't been one reason for this thing to break out; NOT.ONE.
CPI coming in better than expected
PCE coming in as expected or better than
PPI Coming in as expected or better than
Powell talking a hawkish game but only raising 25bps
Even the ADP came in lower ...
With that being said for the sake of common sense now I'll get to the technicals.
Forming a bullish wedge here on the chart with bullish divergence on the RSI.
Hourly RSI over sold but that could just lead to a pop to the 20ma.
So that brings us back to this daily wedge pattern. sometimes patterns need Catalyst or "News" to breakout; I thought today's rate hike would be that Catalyst. Looking ahead , besides ECB rate decision tomorrow, and Fridays January unemployment I don't see a Catalyst coming in the next week to make this breakout.
Sometimes there is just a cycle correction like what happens after the summer months in early Sept and sometimes in mid to late Feb.
For now we wait an see , if vix loses support here, we head back. To 16.50 which is its yearly trendline support
Wow. If this plays out look out stock market.Giant double bottom with a bullish symmetrical continuation triangle forming at the end which can clearly be seen on the 4 hour chart. This is the daily chart. If the VIX makes its way up to form the neckline of this double bottom then we are no where remotely close to the end of this bear market : ( let's hope not.