timwest

SPY & VIX - Follow up - How to view drops in VIX

AMEX:SPY   SPDR S&P 500 ETF
410 2 7
The setup for this is for VIX             to spike up 5 points.

Once VIX             spikes up 5 points and then falls back down by 75%, the storm has passed and the BUYERS who stepped in a those levels can be viewed as BIG MONEY or SMART MONEY since they were buying low in a mini-crisis.

After VIX             comes back down, the storm has passed, but the buyers eventually get TESTED to make sure they are real or that they are BIG.

It's happened this way for a long time. A year ago I posted this, but I don't keep posting every follow up signal. The one I did post suggested that the SPY             needed to drop back down to 194 to retest those buyers, but we still haven't done that.

We have had five more signals and they all worked very nicely and the current one is still setting up since VIX             hasn't fallen back down 75% from the recent spike up. VIX             must hit 14 and when it does, that's the level that needs to get retested.

Maybe this doesn't look like rocket science, but it is another way to look at VIX             and the buyers who buy when VIX             is HIGH and how the market retests those buyers in the future. The market is always trying to see who is in control. The concept is basically that "When VIX             DROPS off of a spike, those buyers will get tested".

If that isn't clear, it will be at a later date when I post again on this topic.

Cheers,

Tim 3:46PM EST Monday, July 13, 2015
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penny_b_reaker
a year ago
Very cool tip. Love your analysis ... keep up the good work!
+1 Reply
timwest PRO penny_b_reaker
a year ago
Reply
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