Black Swan Is HereThe BBWP Indicator on the VIX weekly chart suggests a looming 'black swan' event, characterized by a sudden spike in market volatility following a period of calm. This pattern, previously seen before major market shifts like the SVB Bank collapse and COVID, signals an impending rise in the VIX. Current data points to a significant volatility increase starting January 16th, peaking around early March 2024, within a 52-day window. The anticipated increase is around 287.84%, with a potential fluctuation range (standard deviation) of 193.32%. This translates to a VIX range between 25.64 and 76.60, peaking between February 11th and April 3rd, 2024. Historical instances support this forecast, showing substantial VIX rises over varied durations. Investors are advised to stay vigilant and prepare for possible dramatic market changes. In other words, "hold onto your butts."
The raw data for the past six iterations shows that the VIX has increased by 337.27% over 70 days, 52.79% over 21 days, 452.16% over 34 days, 221.04% over 91 days, 588% over 70 days, and 75.75% over 28 days. This data indicates that investors should be cautious and prepare themselves for potential market shifts, as this scenario could represent a significant threat to market stability and profitability.
VIX trade ideas
VIX Stock Chart Fibonacci Analysis 011924Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 14/61.80%
Chart time frame : B
A) 15 min(1W-3M)
B) 1 hr(3M-6M)
C) 4 hr(6M-1year)
D) 1 day(1-3years)
Stock progress : B
A) Keep rising over 61.80% resistance
B) 61.80% resistance
C) Hit the bottom
D) Hit the top
Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern.
When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point.
As a great help, tradingview provide these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved.
If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks.
If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
Flight preparation?VIX has a long gun loading time.
But right now, two oscillators on the weekly chart look very bullish at once.
It would be strange if within a month the gun didn't start firing upwards.
Ok, I can't tell you the exact time frame, probably some day in the fall it will happen.
For comparison, I've indicated similar patterns for winter 2020.
But now the oversold is much more severe according to WT_CROSS.
๐๐ Preparing for Market Shifts - Time for Forex ๐น๐8+8 Risks๐ Preparing for Market Shifts - Time for Forex ๐
In 2023 I was very much focused on Crypto and especially Bitcoin. It ended upbeing a Great decision.
Bitcoin remains my favorite asset but as a Trader i need to make the first decision right:
What shall i focus on Trading now?
Well, looking at the VIX a shift in our navigational charts could be prudent.
Changing 'Market conditions'? Very likely inbound. Yes...
๐ Navigating Calm VIX Seas - The Calm Before the Storm ๐
The unassuming lull on the VIX, marked by a sub-7% hush, is a siren's call.
With economic indicators suggesting a softening of the inflationary winds and a potential ease in rate hikes, the market's next cycle looms on the horizon.
๐น Back to school - Forex Awaits ๐น
The pivot to forex is not a retreat but a strategic maneuver. The forex market, with its vast array of currencies, offers a diverse battlefield as we prepare for the next wave of market volatility. It's in these fluid forex waters that we can capitalize on the slightest economic ripples, turning currents into opportunities.
๐ The Forex Advantage - A hedge to Bitcoin and Crypto! ๐
Crypto will remain my favorite arena but Forex trading beckons with its promise of agility and scope, critical in navigating the uncertain tides ahead. The shift to forex and equities signals my readiness to embrace broader markets and old frontiers as we anticipate the VIX's silent warnings of change.
๐ A Watchful Eye - What can go wrong ๐
These are the main 8 areas where 'Trouble can Arise':
1. ๐จ๐ณ China's Challenges: Property Pressure Cooker ๐๏ธ๐ฅ
The world economy has 2 lungs, USA and China.
In 2008 the USA Lung got pneumonia.. and i am worried that soon a similar Chinese crisis could follow.
Unlike Westerns, Chinese are savers but still: Chinese growth is worry number one.
2.๐ณ๏ธ US Elections: Political Pendulum ๐ญ๐
The US political landscape is a battleground of ideologies, the crowds are fanaticized and these elections smell like TNT. Needless to say it's a Global worry that America has failed to have a Strong Political leader this period. I don't like what i see...this is worry number 2
3.๐ณ Debt Dynamics: The Global Balancing Act ๐โ๏ธ
You know what i mean... Is it under control and for how Long? This is worry number 3
4.๐ World Wars: Geopolitical Flashpoints โ๏ธ๐ด
The grim prospect of war requires a keen eye on safe-haven currencies and risk management. The situation in Ukraine could be ending but Middle East and shipping routes are a ticking bomb. Let's pray for peace
5.๐ค AI's Ambition: Promise or Peril? ๐ง ๐ก
Artificial Intelligence advances at breakneck speed, offering innovation but also posing systemic risks if gone awry. AI is faster than we thought and that would pose a new threat. In this section add the possibility of a Global network's failure of some kind and disrupted communications. We depend on the internet.
6.๐ Inflation's Impact: Trade and Turmoil ๐๐
Disrupted shipping lanes spell trouble for global trade, stoking inflationary fires. As supply chains twist in the winds of change, Forex markets react in real-time, presenting challenges and opportunities amidst the chaos.
7. ๐ฑ USD Currency Supremacy: A Throne Contested ๐๐
The US dollar's reign as the premier global exchange currency faces tests from rising contenders. The battle for supremacy can redefine currency correlations and demand adaptive trading approaches.
8. ๐ฆ Banking Sector: The Keystone of Stability ๐๏ธ๐จ
We saw what happened last year. Banks can go bust and this is a valid scenario one better be prepared for...just in case!
Another 8 factors could be:
๐ฟ Environmental Crisis: Disrupted Climate Costs ๐ช๏ธ๐
๐ข๏ธ Energy Market Volatility: Wars over Lithium next? ๐โฝ
๐ Satellite Security Concerns ๐ฐ๏ธ๐
๐ Cybersecurity Threats ๐๐ป
๐ The Incontrollable migration Frontier unrests ๐๐
๐ญ Manufacturing Migrations: Shifting Supply Chains ๐๐ญ
๐งโ๐คโ๐ง Social Instability: The Cost of Inequality ๐ฅ๐ธ
๐ฑ Food Security: Agricultural Anxiety ๐พ๐
As a trader i need to be prepared and I need to be hedged. Time to hedge my Crypto exposure with some FOREX trades this year. ... Just in (8+8) cases!
One Love,
The FXPROFESSOR ๐
Don't Be Fooled, Eyes on a Bearish VIXThe S&P 500 has dismissed (thus far) a failed Santa Claus rally by climbing to all-time-highs this week. But the VIX's low double digit position, even during the broader market's less-jolly, pullback into 2024, is a much more sure-footed warning historically, rather than a reason for investors to believe this time is different. The good news and not to look a gift horse in the mouth, pricing for protective hedges on stock and / or index holdings, is by and large, attractively cheap and a much stronger option than jumping in and out of the market imho.
Bullish RSI divergenceVIX has bullish RSI divergence on the 1hr timeframe.
20 SMA is switching from a resistance roll to a support roll soon.
50 SMA is acting as resistance line for falling wedge.
100 SMA and 200 SMA will converge and act as heavy resistance and prevent full breakout of wedge.
VIX will fall back inside the wedge to the lower trendline for a little longer.
(I had a longer more in-depth post but I had to delete it because I forgot something the first time, and forgot to copy the description. Not writing more)
VIX is showing signs of awakeningAs the stock market is beginning to manifest weakness, we are paying close attention to the VIX, which is starting to exhibit signs of awakening.
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 serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.
VIX follows gas pricesGas prices seem to have predicted volatility better than other assets in the past half year. Could the trend persist? Both VIX and NG1 are poised to grow on a separate action. The winter is coming which means surging demand for electricity. A seasonal increase up to $3 seems attainable. VIX could gain if the reversal of the uptrend in the market will occur, which is quite likely considering that main indices all climbed up to ATH which historically causes correction in their prices
$VIX making noise again, cautionNot liking what I am seeing here in reference to the $VIX.
Let's see how we close today but this roar sounds stronger than the previous one we had not long ago. That might have been the practice, test.
#stocks have performed well and are due for some sort of "rest", consolidation.
1Hr CBOE:SPX showing weakness with a bearish crossover.
4Hr seems okay, for now at least.
#VIX AMEX:SPY AMEX:SPXS AMEX:SPXL
VIX showing that tension is expected soon in the stock markets.The Volatility Index (VIX) is trading within a Channel Down pattern since the September 28 2022 High, which has also been the start of the 2023 recovery year for the stock markets (SPX illustrated by the thin black trend-line). Being negatively correlated in nature, when VIX declined within this Channel, the stocks rose and vice versa.
Since October 23 2023, VIX started to decline again and that sparked the stock rise which is holding up to this day, the end-of-the-year rally. However, we see a deceleration on VIX's decline, while its 1D MACD has formed a Bullish Cross since December 01. Being so close to the Channel Down bottom, a technical rebound is technically plausible and the pattern is recurring as it resembles a lot the previous Lower Lows.
If it does reverse upwards, the SPX can react a few days later as during the previous bottom process and reversal (June 22 - July 27) it lagged. In any case, this pattern shows that by January 2024, we should expect heightened volatility translated potentially into a (short-term at least) pull-back on the stock market.
-------------------------------------------------------------------------------
** Please LIKE ๐, FOLLOW โ
, SHARE ๐ and COMMENT โ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. **
-------------------------------------------------------------------------------
๐ธ๐ธ๐ธ๐ธ๐ธ๐ธ
๐ ๐ ๐ ๐ ๐ ๐
$VIX about to make a moveTVC:VIX is rearing its head again. Last time it sputtered when it roared.
Let's see what happens this time around.
See how the RED LINE keeps pressuring it lower? It has been trading under the average since late Oct. Well, the Yellow line will either GIVE or Push it Higher. It is going to happen sooner rather than later.
SP:SPX AMEX:SPY
VIX near signaling a correctionLow volatility is good for the market, but extreme low volatility is not
As you can see, a lot of times where the TVC:VIX crossed 12 from below it signaled a correction within a bull market
And is not just the VIX, there are other breath indicators that are converging at levels that usually signal correction
I normally track the % of SPX stocks above their 50-day and 200-day MAs, NYSE New Highs/Lows and NYSE New 52-week Highs/Lows
My target would be 4.300 in the SP:SPX
VIX hitting a solid long zone one weekly candlesI will be averaging into some vix calls over the remainder of the year. I believe it will stay relatively low for the near term. My calls will be 6 months out if possible. The vix is known for its spikes and Ill have triggers for it to sell at certain price points. I am also doing this because of a personal conviction of a slight/ or major pull back in the new year. Please leave comments, I love to learn and hear other perspectives!
VIX Index at Lowest Levels Since 2017OVERVIEW
As of 12/12/2023, CBOE:VIX is at 11.82.
There have only been a handful of periods over the last 30 years where stock market volatility is at a similar level, including 2007 and 1994.
Some would argue it implies an increasing level of volatility will be due in 2024.
What is the VIX?
The CBOE Volatility Index, is a real-time market index representing the market's expectations for volatility over the coming 30 days. Investors often refer to the VIX as the "fear index" or "fear gauge" because it is one of the most recognized measures of market volatility.
Here's a breakdown of what the VIX represents:
Volatility Measurement:
The VIX measures the stock market's expectation of volatility based on S&P 500 index options. It is calculated using the bid and ask prices of S&P 500 index options.
Forward-Looking: Unlike many market metrics that look at past performance, the VIX is forward-looking. It provides a 30-day forward projection of volatility.
Market Sentiment Indicator: A high VIX value indicates that traders expect significant changes (volatility) in stock prices, which is often associated with market uncertainty or fear. Conversely, a low VIX suggests low expected volatility and is often associated with market stability.
Not a Direct Stock Market Indicator : It's important to note that the VIX does not measure the direction of stock market movements. Instead, it measures how much the market is expected to fluctuate, regardless of the direction.
Use in Investment Strategies: Some investors use the VIX to help in making decisions about market timing. For example, a high VIX might suggest a market turning point, leading some to consider it a good time to buy, while others might see it as a signal to sell.
VIX Derivatives: There are various financial products, such as VIX futures and options, that allow investors to trade based on their views of future market volatility.
Risk Management Tool: For portfolio managers and sophisticated investors, the VIX can be a tool to hedge against market volatility or to take a position on future volatility.
In summary, the VIX is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. It has become a crucial tool in financial markets for hedging, trading, and investment strategy formulation