VIX trade ideas
VIX: VOLATILITY CYCLES / PREDICTION / EXPONENTIAL MOVING AVERAGEDESCRIPTION: In the chart above I have provided a SEMI-MACRO analysis of VIX. I have decided to reduce the number of BARS that it will take for the Volatility Index to see its next price action cycle with past cycles lasting up too 250, 300, or 375 BARS to complete. With current price action trajectory and support it appears 250 BARS would be the most suitable span of time for this current cycle to complete.
POINTS:
1. Deviation of 7 Points Remains the same for SUPPLY & DEMAND POCKET PLACEMENT.
2. 8 YEAR UPTREND Line has nearly made contact & is indicative of VIX seeing a rubber band reaction to the upside.
3. Current DOWNTREND pattern is being squeezed against 8 year trend.
IMO: If price action sees a break to the upside past 21.50 it will be a sure enough bet that VIX will then be looking for 26 Points.
EMA'S: PAY CLOSE ATTENTION TO TIGHT MOMENTUM OF ALL THREE EMA'S (45,100,200) WHICH USUALLY INDICATIVE OF UPCOMING SHIFT IN TREND.
RSI: In regard to RSI crucial pivot point levels are mapped by using past positions held by RSI when VIX would eventually bottom out.
MACD: The VIX and MACD share a parallel relationship in the way that as soon as MACD touches MEDIAN and switches directions price action on VIX will come to see a shift in momentum. Currently MACD is in negative territory but should be another solid indicator for when VIX is ready to rubber band to the upside.
SCENARIO #1: In a BULLISH scenario price action continues to be supported by threshold at 19 & by March 8th it would be inevitable for PRICE ACTION to not be carried TO THE UPSIDE by the 45 EMA with current TRAJECTORY if SUPPORT OF 19 HOLDS.
SCENARIO #2: In a BEARISH scenario this setup would become invalidated if price action is to BREAK TO THE DOWNSIDE past the 19 SUPPORT LEVEL. And would depend on a future hold of of at least 16.80 to be held in order to respect 8 YEAR UPTREND.
FULL CHART LINK: www.tradingview.com
TVC:VIX
SPY Getting Ready To Break DownI have not posted in a while. My goal is to post weekly updates. I incorporate several indicators for my market sentiment model, including interest rates, EM capital flows, and gold.
All indicators are based on academic papers, most notably several by Wouter Keller.
Sentiment Model Indicators:
Interest Rates: Flipped defensive today
EM: Defensive since Feb 2nd
Gold: Defensive since Feb 2nd
We are now in a defensive regime. Financial conditions are showing signs of tightening, with HYG being the leading candidate. Markets are coming around to the idea that inflation will be higher for longer (CPI, employment, etc), and earnings compression will need to take place.
Technically, the SPY is forming a Wykoff distribution pattern. I am looking to take risk off before a breakdown lower to 380 over the next several weeks. A sustained rally above 418 will void the distribution pattern.
Comments are welcome!
VIX .... Heads UpThis market has been in a 4 1/2 month decline.
Traditionally this market moves inversely to the SPX. Although...not so much recently.
Technically this looks like it's set up for a good risk reward trade.
This scenario fits into my expected correction in the ES in the near term. See my posted SPX idea linked below..
Market ending the last Up leg in the QQQ SP 500 ALL INDEXES The Lack of follow through on the Sp to reach what should be the min target of 4222 with the breaking down of the vix minus 8.75% today is telling me that the final up leg ideal target was 4222 min ideal 4308 is setting up to now Break ALL THE LOWS .
Vix.. The BluePrint Falling wedge.
Gapped up to resistance Friday and today, both led to rejections. Vix actually gapped outside its Bollinger bands 2 days in a row. A hold outside its Bollinger band is not sustainable with News/Catalyst.
CPI tomorrow will decide if the Vix breaks out and Equities correct or Vix heads to 17 and Equities rally.
There is a nasty double top on the hourly that will take this back to 18 quick if tomorrow turns bullish.
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.