Posted by sbaxman111 on 10th of Apr 2015 at 12:56 pm
My VIX chart uses 4 indicators in the upper part of the
chart to provide Long and Short signals. When the market is above
its 200 day line as it is now, a Short signal is generated
when all 4 of the indicators are below their lower extreme
readings. This means below 10% for the RSI-2, below 30% for RSI-4,
-100 for the CCI, and then 20% for the stochastic. Currently the
RSI-2 of the SPX, Dow, and NDX are all overbought at more
than 95%, while my index of choice the RUT, is at 76+%. If
this setup continues thru the close, I will look to scale into a
short RUT position and/or a possible long volaitility
trade.
In addition to the 4 upper indicators, the %B is near 0.00,
the VIX is almost 10% below its 10 day line, and the VIX is also
trading below the 20,1.5 Bollinger Band. The combination of these
indicators tells me that volatility is oversold and is likely to
revert back to its mean.
Posted by praetor54 on 10th of Apr 2015 at 04:16 pm
Thanks sbaxman. Very solid looking system. I like the fact
that you use a 4-7 indicators to reduce the risk and create high
probability trades. I have added this one to my toolbox and
have taken a VIX long trade via HVU.
Possible VIX Short chart
Posted by sbaxman111 on 10th of Apr 2015 at 12:56 pm
My VIX chart uses 4 indicators in the upper part of the chart to provide Long and Short signals. When the market is above its 200 day line as it is now, a Short signal is generated when all 4 of the indicators are below their lower extreme readings. This means below 10% for the RSI-2, below 30% for RSI-4, -100 for the CCI, and then 20% for the stochastic. Currently the RSI-2 of the SPX, Dow, and NDX are all overbought at more than 95%, while my index of choice the RUT, is at 76+%. If this setup continues thru the close, I will look to scale into a short RUT position and/or a possible long volaitility trade.
In addition to the 4 upper indicators, the %B is near 0.00, the VIX is almost 10% below its 10 day line, and the VIX is also trading below the 20,1.5 Bollinger Band. The combination of these indicators tells me that volatility is oversold and is likely to revert back to its mean.
http://stockcharts.com/h-sc/ui?s=$VIX&p=D&st=2014-11-01&en=today&id=p33929077182&listNum=1&a=326582706
Hi The RUT commercials
Posted by rbreese on 12th of Apr 2015 at 05:00 pm
Hi The RUT commercials are now net flat after being LONG a lot of contracts for MANY months.
VIX/Short Strategy
Posted by praetor54 on 10th of Apr 2015 at 04:16 pm
Thanks sbaxman. Very solid looking system. I like the fact that you use a 4-7 indicators to reduce the risk and create high probability trades. I have added this one to my toolbox and have taken a VIX long trade via HVU.
I would rather see actual results before applying any money
Posted by torvix on 11th of Apr 2015 at 11:06 am
VIX was weak on friday and next week who knows may be it goes up or maybe it goes down, but the red candle was shown on friday.
VIX down again, follow thru from Friday, trend down 4 now
Posted by torvix on 13th of Apr 2015 at 10:09 am
HVU? You must be Canadian
Posted by jsliedre on 10th of Apr 2015 at 09:55 pm
HVU? You must be Canadian :)
How about a TVIX long?
Posted by jdeen on 10th of Apr 2015 at 03:46 pm
How about a TVIX long?
Looks like VIX will close
Posted by EdZ on 10th of Apr 2015 at 03:42 pm
Looks like VIX will close below the BB on the daily today.
vix article on zerohedge
Posted by whs956 on 10th of Apr 2015 at 11:40 pm
http://www.zerohedge.com/news/2015-04-10/vix-closes-5-month-lows-bofa-warns-volatility-term-structure-significant-concern