Summary Evaluating the historic change in the VIX from the 1992, 1996, 2000, 2004, 2008, 2012 and 2016 elections we can see that Q4 of each election year is a downtrend and results in lower volatility until the inauguration in January of the ensuing year, regardless of the result.
**CLINTON ADDED To chart AFTER POST PUBLISHING**
Will 2020 be different?
Other factors to consider
Nov. 4th is a Wednesday/Contract Expiration Day
DJIA, IXIC and SPX are all sitting on resistances-flipped-supports from ATH beginning of 2020
I have a VXN 1987 crash comparison to the current VIX, many similarities... and if true I guess we could see VIX spike to 100 to 200
i_Sea
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@TomNewYork, my previous reply is glitched, which vix stock should i invest in to get the most percentage wise gains?
TomNewYork
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@i_Sea, UVXY is the double long VIX and VXX is the regular long VIX etf.
erfrerdbackup
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Can you explain to me why my bank lowered the leverage of my vix-cert which I own from 1 to 0.75? I was and still am waiting for it since 8 months to go up but when they lowered it like that it will be a much harder time for it to go up, it's like they robbed me of potential cumulative vix gains, maybe 50+% and 6 months of waiting time? What if they lower it even more to let's say 0.5? That would be catastrophic, how can they be allowed to do this? Will they raise it back up, otherwise it's theft. I wasn't notified to my email so I don't know when it happened.
pchatzis77
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@erfrerdbackup, you always loose money when trading vix composites.... You cant trade vix but you can trade VXX for instance. For VXX to operate you need for instance 10 vix future contracts and you need to maintain these 10 contracts for VXX to exist/operate. Now every future contract expires at some point. When that happens they have to maintain the 10 contracts and they sell the short-dated future contract and buy future dated contracts. 80% of the time the back-month trade higher than their short-term future dated contract (this is the contango effect). So basically you loose your money 80% of the time.
erfrerdbackup
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@pchatzis77, They changed it back to a leverage of 1 some weeks ago, i dont know why they change it forth and back or how much they are allowed to change, max or min.
ICEKI
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Let's have a markets crash party!
smoodysiah
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@ICEKI, vix goes down.........meaning markets will feel safer to invest in. meaning markets will go up..