Posted by timebandit on 22nd of Dec 2023 at 01:29 pm
Yes, do remember. We're going to get that buy signal barring
some late day collapse, which doesn't see imminent. Probably
sideways drift into the holiday weekend. $VVIX has been known to be
a day earlier on buy signals
Posted by DigiNomad on 22nd of Dec 2023 at 01:50 pm
I think you mean a SPX buy signal based on a VVIX sell signal,
correct? Agree. Closing back in the bands is all but
inevitable, but it seems about like trying to squeeze blood from a
stone at these VIX levels. We barely popped to get the signal
because the bands were so tight and we'll likely be outside the
other side of the bands in no time (on the downside). Seems
like this signal would potentially benefit from a qualifier e.g. If
VVIX is above 95 and outside of upper bollinger band , then buy SPX
on a VVIX close back inside the bollinger bands. It's a
volatility trade at its core, so having a decent level of
volatility before looking for a trigger seems prudent? The 94
level we hit on VVIX on wed - thurs is very tame when viewed on a
VVIX chart.
Posted by timebandit on 22nd of Dec 2023 at 02:04 pm
Yes, Digi, that's a good way of thinking about it.. I look at
the $VVIX signal pretty much the same as I look at a $VIX buy
signal. Not something to buy reflexively, but a factor in the bull
column. I do like when they both happen together.
Yes, do remember. We're going
$VVIX - gave a buy signal yesterday, closing back within ...
Posted by timebandit on 22nd of Dec 2023 at 01:29 pm
Yes, do remember. We're going to get that buy signal barring some late day collapse, which doesn't see imminent. Probably sideways drift into the holiday weekend. $VVIX has been known to be a day earlier on buy signals
I think you mean a
Posted by DigiNomad on 22nd of Dec 2023 at 01:50 pm
I think you mean a SPX buy signal based on a VVIX sell signal, correct? Agree. Closing back in the bands is all but inevitable, but it seems about like trying to squeeze blood from a stone at these VIX levels. We barely popped to get the signal because the bands were so tight and we'll likely be outside the other side of the bands in no time (on the downside). Seems like this signal would potentially benefit from a qualifier e.g. If VVIX is above 95 and outside of upper bollinger band , then buy SPX on a VVIX close back inside the bollinger bands. It's a volatility trade at its core, so having a decent level of volatility before looking for a trigger seems prudent? The 94 level we hit on VVIX on wed - thurs is very tame when viewed on a VVIX chart.
Yes, Digi, that's a good
Posted by timebandit on 22nd of Dec 2023 at 02:04 pm
Yes, Digi, that's a good way of thinking about it.. I look at the $VVIX signal pretty much the same as I look at a $VIX buy signal. Not something to buy reflexively, but a factor in the bull column. I do like when they both happen together.
The $VIX buy signal is
Posted by timebandit on 22nd of Dec 2023 at 02:28 pm
The $VIX buy signal is at risk of disappearing with this selloff. $VIX needs to close above 13.71, not quite there yet