Vixfutures
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: 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
VIX is reapeating the patternA rule of 2 gives a perfect VIX long setup into Q1 on 2023 rally.
The markets are not over with the downside and VIX didn't get even one bottoming signal in 2022. It was intermediate bottoms, but no panic
Im going to add more VIX calls, Apr expiration this coming week.
Its in consolidation mode and should end soon with the breakout
VIXM | Incoming Volatility | LONG The fund seeks to meet its investment objective, by taking long positions in VIX futures contracts. It will also hold cash or cash equivalents such as U.S. Treasury securities or other high credit quality, short-term fixed-income or similar securities (such as shares of money market funds) as collateral for Financial Instruments and pending investment in Financial Instruments.
VIX BULL$VIX is creating a Bullish 1-2-3 Pattern at its previous market structure bottom (Support marked by the grey box). Price is currently consolidating at support and what historic price action tells us is that price usually has a period of consolidation known as a pullback or "Retracement" before it continues in its overall direction. I have price returning to an older higher-low Level @25.50 and beyond.
VIX Watch the close above that yellow trendline and ideallyVIX Watch the close above that yellow trendline and ideally above yesterday's close to get a confirmation of the turn today
If SPX gets to my first support zone at 3984-88 then VIX has a potential to get above that yellow trendline
Now lets do it
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!
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