Posted by sbaxman111 on 16th of Jul 2015 at 11:36 am
Since I like to trade the RUT index, I follow the $RVX
volatility chart as well as the VIX chart. At the moment 3 of the
four indicators at the top of the RVX chart are overextended to the
downside. In most circumstances I look for all 4 to be oversold
before I consider this as a possible Short signal. But RVX is
trading down at a support line that goes back to March. Also note
that RVX is about 16% below its 10 day ema line. The VIX is almost
17.5% below its 10 day line. Connors looks for trade opportunities
when this value exceeds 12.5%.
In addition, my 60 minute RUT chart has become overbought
on a short-term basis so far today, after being short-term oversold
at yesterday's close - which provided me with a nice Long
signal for today. My 60 minute RVX chart is also currently
providing a short-term go Long volatility signal. If these
conditions remain at the close I will likely scale into a Short RUT
trade and consider a position in VXX/UXVY.
The NDX is currently trading almost 2% above its daily 9
ema line and on my 60 min chart has RSI-14 and RSI-21 values
above 70%....something that doesn't happen very often without
triggering a short-term reversal.
The August 12 VIX calls are selling for 2.65, while the 12 puts
are essentially worthless. Breakeven on the calls is over 22% up in
33 days. While the VIX has fallen significantly since the market
lows, vol on vol remains quite high. Don't see a VIX option play
here; have to use alternatives.
maybe but also review my video how these bottoming moves can
move strongly higher without much of a pullback, i.e. three
white soldiers pattern. Also even Fib Queen's article there,
she said much over 2115 and the SPX could be set to go to her next
extensions at 2160 to 2190
Possible Long volatility/Short RUT trade today
Posted by sbaxman111 on 16th of Jul 2015 at 11:36 am
Since I like to trade the RUT index, I follow the $RVX volatility chart as well as the VIX chart. At the moment 3 of the four indicators at the top of the RVX chart are overextended to the downside. In most circumstances I look for all 4 to be oversold before I consider this as a possible Short signal. But RVX is trading down at a support line that goes back to March. Also note that RVX is about 16% below its 10 day ema line. The VIX is almost 17.5% below its 10 day line. Connors looks for trade opportunities when this value exceeds 12.5%.
In addition, my 60 minute RUT chart has become overbought on a short-term basis so far today, after being short-term oversold at yesterday's close - which provided me with a nice Long signal for today. My 60 minute RVX chart is also currently providing a short-term go Long volatility signal. If these conditions remain at the close I will likely scale into a Short RUT trade and consider a position in VXX/UXVY.
The NDX is currently trading almost 2% above its daily 9 ema line and on my 60 min chart has RSI-14 and RSI-21 values above 70%....something that doesn't happen very often without triggering a short-term reversal.
http://stockcharts.com/h-sc/ui?s=%24RVX&p=D&yr=0&mn=4&dy=0&id=p38581140143&listNum=1&a=319468392
VIX at 12 again
Posted by praetor54 on 16th of Jul 2015 at 03:23 pm
The VIX is down around 12 where it bottomed May 26th and June 24th. Looks like a good spot to take a quick VXX or HVU trade.
Thanks sbaxman
The August 12 VIX calls
Posted by a_l_ on 16th of Jul 2015 at 03:31 pm
The August 12 VIX calls are selling for 2.65, while the 12 puts are essentially worthless. Breakeven on the calls is over 22% up in 33 days. While the VIX has fallen significantly since the market lows, vol on vol remains quite high. Don't see a VIX option play here; have to use alternatives.
Thinking about selling AUG UVXY
Posted by a_l_ on 16th of Jul 2015 at 03:35 pm
Thinking about selling AUG UVXY 23-22 put spreads and buying 12 VIX puts.
Did that small for .25
Posted by a_l_ on 16th of Jul 2015 at 03:38 pm
Did that small for .25 net credit
maybe but also review my
Posted by matt on 16th of Jul 2015 at 03:30 pm
maybe but also review my video how these bottoming moves can move strongly higher without much of a pullback, i.e. three white soldiers pattern. Also even Fib Queen's article there, she said much over 2115 and the SPX could be set to go to her next extensions at 2160 to 2190
THX as I got short
Posted by rbreese on 16th of Jul 2015 at 01:20 pm
THX as I got short IWM at 126.70.