Posted by chlo8888 on 22nd of Jul 2024 at 04:28 pm
Digi
The name of the system implies volatility is coming. I take it
that’s not what the system is signaling? It seems it’s giving a
bullish signal to the qqq and spy?
Posted by DigiNomad on 22nd of Jul 2024 at 04:32 pm
It's the opposite in this case. It's signaling a reversion to
the mean after an above standard deviation move higher in
volatility (above the bollinger band). VIX and SPX are
typically inversely correlated. So, long SPX, SPY, etc on the
trigger.
If the VIX closed BELOW the lower band and then closed back
inside, then you would be looking for higher vol and short
SPX.
Digi The name of the system
The VIX volatilty systems are going long today
Posted by chlo8888 on 22nd of Jul 2024 at 04:28 pm
Digi
The name of the system implies volatility is coming. I take it that’s not what the system is signaling? It seems it’s giving a bullish signal to the qqq and spy?
It's the opposite in this
Posted by DigiNomad on 22nd of Jul 2024 at 04:32 pm
It's the opposite in this case. It's signaling a reversion to the mean after an above standard deviation move higher in volatility (above the bollinger band). VIX and SPX are typically inversely correlated. So, long SPX, SPY, etc on the trigger.
If the VIX closed BELOW the lower band and then closed back inside, then you would be looking for higher vol and short SPX.
Thanks Digi.
Posted by chlo8888 on 22nd of Jul 2024 at 04:34 pm
Thanks Digi.
I just updated response with
Posted by DigiNomad on 22nd of Jul 2024 at 04:34 pm
I just updated response with the short side scenario (signalling higher vol ahead)