Here is one for ya. Could we see another Volatility bull market? Or has the worst already happened? That is the questions we will discuss today. We will be looking at the most heavily watched volatility tool, the VIX! Let’s have a look at the chart!
A couple of things we see here. The trend has changed from bearish to neutral. That is the first and most important thing. Now the only question that remains is will it go from neutral to bullish? The other thing we see is there the stochastic is overbought, but it hasn’t crossed. So there still could be more upside, but it won’t be a crazy amount. The %SMA oscillator looks like it is over extended as well. We have only seen a value above 30% 4 times in the last 4 years. So my guess is the upside in this trade is minimal. However if we bounce off the lower trend line, that is where we can enter for a long again.
My call is that VIX has little upside left for this run, so maybe next time! Watch the lower trend line and see if we bounce off of that. Maybe we are entering into a VIX bull run? Still more info needed for that call though! Thanks for tuning in.
Happy Trading!
A couple of things we see here. The trend has changed from bearish to neutral. That is the first and most important thing. Now the only question that remains is will it go from neutral to bullish? The other thing we see is there the stochastic is overbought, but it hasn’t crossed. So there still could be more upside, but it won’t be a crazy amount. The %SMA oscillator looks like it is over extended as well. We have only seen a value above 30% 4 times in the last 4 years. So my guess is the upside in this trade is minimal. However if we bounce off the lower trend line, that is where we can enter for a long again.
My call is that VIX has little upside left for this run, so maybe next time! Watch the lower trend line and see if we bounce off of that. Maybe we are entering into a VIX bull run? Still more info needed for that call though! Thanks for tuning in.
Happy Trading!