I'm pretty clueless on the mechanics but its probably the same
kind of warning as 'stocks up, vix up'. I use vvix/vix as a
leading indicator on all timeframes and it has bullish divergences
too, so yeah lots of head spinning when thinking about the
correlation lol.
It seems like when the ratio is in a structural uptrend
(obv hard to tell in real time), the bearish divergences and dips
seem to be smaller than when its in a downtrend. Would love to hear
other opinions on what it all means.
Posted by DigiNomad on 9th of Apr 2024 at 11:36 pm
Crazy chart. I guess for now I'll just add it to the warning
indicators and follow price action. That sounds great and all but
it would be better to be able to predict past the next day....for
the vast majority of people...including anyone on here that engages
in other than short term trading. For example, I'd probably sell my
rental property in a heartbeat if I knew that signal was going to
play out. The BIG winners predict and put their money on the line
in advance of confirmation. I don't have the balls at this point to
get in front of the money printing bazooka - seems like we're in
the midst of a different kind of crash but everyone is taken by all
the shiny object distractions and barely notices the extremes.
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I'm pretty clueless on the
$VVIX/VIX corr way < 0. Rare
Posted by simple_million on 9th of Apr 2024 at 03:31 pm
I'm pretty clueless on the mechanics but its probably the same kind of warning as 'stocks up, vix up'. I use vvix/vix as a leading indicator on all timeframes and it has bullish divergences too, so yeah lots of head spinning when thinking about the correlation lol.
It seems like when the ratio is in a structural uptrend (obv hard to tell in real time), the bearish divergences and dips seem to be smaller than when its in a downtrend. Would love to hear other opinions on what it all means.
Crazy chart. I guess for
Posted by DigiNomad on 9th of Apr 2024 at 11:36 pm
Crazy chart. I guess for now I'll just add it to the warning indicators and follow price action. That sounds great and all but it would be better to be able to predict past the next day....for the vast majority of people...including anyone on here that engages in other than short term trading. For example, I'd probably sell my rental property in a heartbeat if I knew that signal was going to play out. The BIG winners predict and put their money on the line in advance of confirmation. I don't have the balls at this point to get in front of the money printing bazooka - seems like we're in the midst of a different kind of crash but everyone is taken by all the shiny object distractions and barely notices the extremes.