I have rethought about trading VIX, and here are something that I noticed. One interest fact was its tendency to retreat back to its .786 level, no matter how much it gained at the first place. From January's to March's, I believe the current VIX is really similar to the move that happened in Feb 9th, with a resemblance on movements and retreat level. The VX future also looks good after crazy selling, and I do believe it might be a good opportunity to continue shorting indices, especially ES or SPX, and of course longing VIX might be a good idea I suppose.
Trade active:
Looks like today we are landing at .786 retracement. Good start in my opinion, and very likely to see more upside.
Comment:
Very surprised to see VIX crashed all the way from 29 to 27. However I don't really perceive that as a failed breakout. From my point of view I am seeing UVXY holding its support level, and earning season coming very soon, especially the banking industry which are more correlated with SPX.
Trade active:
Sadly. A failed breakout. But I don't think it's the end yet as it is still above the previous support which was 23.74. Stop loss placed at 23.7. Good luck for the upcoming week and I will stay active for the trading plan.
Comment:
Still way too low... It has been really confusing for me why a stock market that was down by 30% has VIX barely up. Patiently waiting for the Fed meeting & FAAMG earnings. Still bearish.
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