Will history repeat again?Look at the VIX chart here; we are again in the VIX 18th zone. In 2022 it was an excellent indicator to spot the bottom; it works during the bear markets only!
So if we are still in a bear market, it should bounce from the 18 level hard and Indexes to fall. If we are entering a bull market, this setup can fail right here.
I doubt it will fail until we see Q1 lows in markets. I might be wrong, and this setup can fail in a grand style.
The VIX bottoms have an excellent correlation with SPX highs (at the bottom orange colour); look for the yellow marked pointers for the 2022 patterns from VIX 18 level. I think we will repeat the same pattern again.
VIX trade ideas
Bull Trap Ahead!! Max pain incoming...In trading, a bull trap is a situation where a trader (beginner) buys an asset believing its price will continue to rise, only to see it fall sharply soon after. If you inspect the SPX chart by yourself, you'll see:
1- lack of increasing volume
2- absence of momentum
3- lack of definite/sufficient trend break
4- retesting of resistance level (Major downward trendline)
5- sus bullish candlesticks
6- last but not the least, the VIX is at the zone where the market always reverse to the downside. This is just a prime short entry in my opinion.
Overall, the macro market conditions still didn't improve that much. Ofc there is a chance it breaks up, however, the odds of this being a bull trap is wayyy more likely. Don't FOMO into anything and have a bi-directional outlook on the chart; inverting the chart might help. Protect your capital and lessen your position sizes until further confirmation. Take care
VIX - it broke to the downside!VIX has broken this long-time curve line - This is very bullish for stocks right now - I expect a retest - but it is likely for VIX to spike down in a very short of time and bounce as fast up.
The levels to watch are marked on the chart - observe SPX breakout aswell as it is ona resistance level for now.
VIX: VOLATILITY INCOMING??? / CHART UPDATE / SUPPLY & DEMANDDESCRIPTION: In the chart above I have provided an UPDATED MACRO chart for the VIX with more reliable SUPPLY & DEMAND POCKET PLACEMENT & UPDATED TRAJECTORY.
POINTS:
1. DEVIATION of 7 POINTS in PRICE ACTION places SUPPLY & DEMAND POCKETS where most STABLE CONSOLIDATION OCCURS.
2. Current trend shows a DESCENDING CHANNEL with VIX NEARLY DOWN 50%
3. MACD'S LOWEST POINTS decides PERIODS where VOLATILITY comes to an END.
4. UPCOMING PREDICTION OF POSSIBLE NEW LOW IS FORMULATED FROM AN AVERAGE OF PERIODS MARKED BETWEEN LOWEST POINTS OF MACD THEREFORE: 91 Days + 135 Days + 109 Days = ROUGHLY 112 Days.
5. RSI signals increased VOLATILITY AFTER BREAK of 40 on RSI.
*IMPORTANT: SUPPORT at 19 has OFFICIALLY BEEN BROKEN. LOSS of 19 CAN BE A STRONG INDICATOR FOR OVERALL MARKET RALLY IN THE POSITIVE.
SCENARIO ONLY ONE: IF YOU ARE A BEAR YOU WANT TO SEE A REGAIN OF 19 SUPPORT AND FURTHER PUSH DOWNWARD FOR BULLS.
TVC:VIX
Shopping stocks for my Old Lady- Dogs of the dow pre recession? When in doubt, choose positive carry.
Dividend paying companies that are lagging. Good and bad.
Good because they are priced with less optimism.
Bad because the price my correctly reelect to opportunity going going forward.
Either way, I like looking at dogs of the dow and dogs of the sp500 to do research.
Ive found many gems that way, even if I choose not to use the strategy.
We dont control outcomes. We only control our habits and decisions. The exercise effort is the gold.
Dividends pay me while I wait. Selling premium pays me while I wait. Earning interest pays me while I wait.
Ideas can take longer than you think to work. May as well get some cashflow and reduce your cost basis over time.
P.S. Dont tell my girlfriend I made a video mentioning her. kthankxbye
$VIX $SPX nearing 2018 trendline before seasonality bounceWith the recent $VIX crush markets are resetting sentiment and creating an excellent hedging / short opportunity in markets
Upcoming seasonality favors a $VIX bounce with middle of January typically marking a bottom before a year high in March from a seasonality perspective
charts.equityclock.com
VIX about to BLOW TO THE UPSIDE!!? 14/1/23Hello traders, hope you grabbed the 600 pips on NAS!!
What a GIFT you all received and yes I called it out see previous posts.
Time to start considering short term SHORT the NAS because now everybody will go nuts longing .. it's all priced in now you see.
Remember too many longs it drops, too many shorts it rises?
VIX tell us it is about to REBOUND this is the SIGN NAS Drop incoming (90% inversely correlated). CAPITALCOM:VIX
The levels I have identified are gaps in the order flow looking at 1hr and 30 min chart, any market at some point returns to FILL.. it leaves us a SIGN.
How much it drops depends on how much greed is there I will be watching the actual contracts exchanged in the order flow to assess.
PS> its the weekend BTC is massively manipulated and has gapped massively up at the time of this post = it will DROP on Monday 16/2/23 that aligns with what the VIX will have to do.
Hope this helps.
All the best!
Possible Market Top in S&PThe market has in the last few years observed the VIX below 20 and above 35 close to 40 and given the market a defined range, its again time for those that follow the Vix as a barometer to decide whether the current rally in the S&P holds here or hereabouts and continues within the range, or its time for the bulls to take control and push the market higher.
the next week will determine this point but remains hard to fight the Fed in my opinion so anticipate the market finding a top between 4000/4100 and have another look at 3940 and possibly 3800.
good luck and happy hunting
Avoiding Risk by tracking VIX, the bull bus might be too crowdedFuture prices are unknowable and unpredictable. But measuring current conditions and valuations are informative. Tracking vix volatility and using it to make better decisions in my experience has been helpful.
Warning: Avoid buying options are generally costly. Options are a form of borrowing money to use leverage provided by an option seller.
VIX Daily - 01132023 BreakdownVIX Daily represented in a Symetrical Triangle coming into the pattern from a bearish stance. This generally signifies a continuation pattern as it has on this chart. Its odd to see the VIX dropping while the SPX is also dropping today. Lets see if that holds. We may get BTD going on and the VIX may retest the pattern as it should.
$VIX close to lower end of rangePre-market we're looking for RED
Sold lil more #stocks after posted we did some selling yesterday (posted elswhere)
Have💵& tons of leverage (only use on occasion)
$NDX should open around yellow line 11270s
$DJI support around 33800s
$VIX clobbered, due for bounce
Have a great trading day!!!
VIX with Historic Spikes AnnotatedLarge spikes in VIX since 1990 highlighted with notes showing the events that caused them. Helps put into perspective where we are now in the markets. The yellow line shows the approximate low of VIX since the pandemic started and the red line shows an approximate line of best fit of when the VIX was low, and markets were calm since 1990.
LONG VIX: 2023 TRADE OF THE YEAR!LONG VIX:
Add/ double down 19.1, 16.5, 15. Then on any pops remove the higher bids.
Target is 40/50/55 depending on macro circumstances.
VVIX is also systemically undervalued. the vol space is primed for green dildo. volmaggedon was Q12018. i expect something similar. all we need is 0.5%mom core inflation on jan 12th or feb 15th and this will print imo.
$VIX closing in on lower part of trendCOPY paste from elsewhere
Let's talk $VIX again
Different #VIX views:
1 Weekly hasn't closed above grey lines
Long term uptrend
Daily WEAK
2
In symmetrical triangle
Bottom part of trend is likely 2b tested
RSI still positive
IMO would reduce longs @ low end & see how it plays
$SPX #SPX #stocks
VIX Daily Breaking Down out of large Symmetrical trianglePretty large pattern. I wanted to draw it as a diamond reversal pattern, but it was more so because i expected the SP500 to drop not rally today. Nope... Trust the patterns. Lets see how low the VIX can go. It was in the 19's when I published this.....