lukelehepuu

VOLATILITY TO EXPLODE, MARKET TO COLLAPSE?

Long
TVC:VIX   Volatility S&P 500 Index
The volatility index is always a fun one to look at.

My main divergence here is that the MACD indicator has just crossed above the centre line however the VIX has just collapsed. This does not sit well with me and I feel there will be a snap back shortly in which VIX (volatility) will spike up and the stock market will sell off.

In order to trade this you can get long through a volatility product like VXX, or alternatively you could short the stock market.
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