VIX closed above the maj bull trendline!Its a very important close for the VIX, all in one day!
VIX closed at HOD and the markets closed above HOD!
Tomorrow's expected move 3.7% on average
- If CPI comes at 7.8% it will be 5% down day
- If CPI comes at 6.9% then it should go up 6-7%
My bet is we go lower or the vice versa from Oct 13th, where it gap down and then bid all day. So if second scenario then we should gap up in markets tomorrow and sell all day!
Vixfutures
VIX is in bulling mode - zoomed outGetting close to its main support for the year.
All the time it got hit (this year) it reversed hard to the upside
VIX is in clear uptrend for a while now.
Check how and what the reaction was each time VIX gets above the trade range.
Expect VIX to hit 3x plus on the next upside!
Im accumulation 35 Apr calls, not going to sell those till the high, ideally in Jan or Mar
More SPX, NQ and BTC charts to follow...
VIX is getting for its own prime timeWatching 20-21 zone for a support.
Historically VIX 20 zone is the bear/bull line.
I expect that to me either tested or even broken for a fake move down and then start to explode.
When VIX is at 45+ watch for the market capitulation. Ideal target for the VIX is 65+ early next year.
When its moving above 35 and especially 45, no no longs for me period, only sell the rips (if there will be any)
Im in with Apr VIX 35 calls, will add tomorrow and on the 28th
A potential divergence between S&P 500 and VIX.A lower low in the VIX not confirmed by a higher high in S&P 500 is a potential divergence. Previous tops and bottoms have seen similar kind of divergences where either one of the two does not confirm the move and hence results in a trend reversal.
Note- This is not an investment advice.
What do USD/MXN and S&P 500 VIX have in common?The Mexican peso (MXN) is one of the conventional high-beta currencies traded on the forex market, making it extremely susceptible to changes in risk sentiment on global financial markets. When MXN inflows occur, it usually signals that investors are willing to take risks. In the last three months, USD/MXN has lost 3%, making the peso one of the best-performing currency in 2022.
Much of the MXN's outperformance has been the result of a very hawkish Mexican Central Bank, which hiked interest rates up to 9.25%, the highest since 2005. Another 75bps hike is expected at November 10th meeting, which would bring Mexican rates to 10%.
Aside from the Banxico hiking cycle in Mexico, the Peso has a strong correlation with global risk factors, namely the stock market volatility. To put it another way, historically, the USD/MXN pair and the S&P volatility index ( VIX ) have behaved similarly.
What are we seeing now?
The USD/MXN 14-day RSI indicator has entered oversold territory, highlighting the need for caution for investors willing to take on more risk at this stage, as MXN valuations are beginning to appear rather stretched.
Therefore, the bearish momentum for both USD/MXN and the VIX might have reached a peak.
Aside from the results of the midterm elections, investors will almost definitely have to digest another strong US CPI data this week. Analysts predict 8% annual inflation in October, with core inflation at 6.5%.
If actual results match or exceed estimates, Fed interest rate expectations will likely be reassessed higher. As the U.S. and Mexican economies are highly interdependent, the anticipated cyclical weakening of the U.S. economy bodes poorly for the Mexican economy and adds to MXN downward pressures.
Idea written by Piero Cingari, forex and commodity market specialist at Capital.com
VIX Red, Markets Down, Nothing makes sense anymore:)VIX is waiting for its prime time and its coming soon imo
Im bullish with VIX and will start buying Apr 2023 40 calls on Monday.
There was no capitulation on the markets so is the VIX 2-3x rally!
Means the markets have more down to go and the next move will be very violent!
Things will start to move after the elections, means very soon!
VIX Weekly Volatility Forecast 31/10 - 04/11 2022 VIX Weekly Volatility Forecast 31/10 - 04/11 2022
Currently the volatility for this week is around 12.11% , up from expected 8.8% last week.
According to ATR calculation, currently the volatility is located around 10th percentile.
Under this circumstances the expected movement of the candle is :
BEAR : 9.4% from the opening point of the weekly candle
BULL : 11.6% from the opening point of the weekly candle
At the same time, currently there is 22.8% that the movement within this weekly candle is going to
break and close either above or below the next channel:
TOP: 29.3
BOT: 24.5
Lastly, taking into account the previous weekly high and low there is a :
35% chance that we are going to touch the previous week high
60% chance that we are going to touch the previous week low
VIX interesting fractalI have checked the amount of days from Mar 2020 first spike to the main low of this VIX smile, its 491d
If counting from the same low day 491d it comes to Nov 2nd! give it plus one day in case I should of start from the following day of the mid low.
Very interesting timing.
Also week of Nov 7th is a cycle panic week...
Im only looking up in VIX
2X 4HR VIX ANALYSIS (200 EMA) (NEXT STOP BEFORE RUN !?)The Vix is the end all be all for stock once it spikes up. AS we look at previous cycles and price action we can see The vix is at a key level where it took off from october 22nd and september 22nd. If we get a reject or bullish confirmation look for the market to sell off because if volatility stays above 35 mark off buy areas for your favorite stocks and get ready to load puts stocks will discount way more!
VIX is still in a setup to blow off the top move to above 65+Im still very bullish on VIC and want to see 2x on VIX at min, ideally we get even 2.5-3x
VIX OPEX is behind us and monthly will come tomorrow, after that we are free to move in a wider range and have new levels to be seen.
Nov is a panic month!
VIX Volatility only beginningVIX is showing higher lows and has broken above the Brim Level of a Cup and Handle.
This is problematic for a trader as it means a lot more jumpiness is coming.
It's also broken out of its downtrend on both chart and the RSI.
With the inflation rate going up, interest rates soon to go up in November and with more money going to be printed in the economy - this isn't good for the markets in the medium term.
Time to risk less per trade, I'd imagine.
Long Volatility into AugustBy now you all know the drill. Let's start with an initial framework, assess the current environment, and evaluate all below questions.
are we trending or ranging?
- a series of higher highs, higher lows
- sellers structure is broken, we are tracking whether buyers will protect or find it difficult to hold
discount?
- we are tracking the lows for the previous wave block
- Support 20, Pivot 25, Resistance 38
managing trade?
- Trading and assess based on quarters, 00, 25, 50, 75
- Market participation in form of current strength/weakness, when market is weak we are sellers and when strong we are buyers
This position, technically speaking, is very similar to the swing we traded in 2020. Buyers have developed a structure of higher highs, and higher lows, and desire their chance to go over to a direct attack on the highs.
In this case the result is not certain; but since attacking in this fashion is characteristic of a volatility event. There are two lines, assuming the 20 support holds. In the first case, as well we need to track 25, the combinatory breakout of 25 will allow buyers to continue their summer dance with a romantic hue, unlocking 38 for August.
VIX is in C&H patternThis is getting so close for a breakout and big market sell!
There is also smaller C&H if it hits 31 level.
Regardless of a scenario, we are very close to some real move.
I was expecting this move and wanted to see a year low hit end of Oct into early Nov.
It seems its going to play out well.
Question is only one - how low?