VIX: Nuetral leaning Long Over all weakening support for the broader markets, aside from media frenzied pharma and the NASDAQ's push behind earnings likely to see some sell off today. Directional movement showing bearish indications, will watch supports and resistances closely today along with charted trend lines on the cube. Initial overlay on 30d/3Hr analysis. Starting to see more volatility support as fear and uncertainty enter the space again. Watching 2y, 10y Bonds, copper, crude as well as rough rice as indicators for bearish plays. Expecting some reversal on precious metals primarily gold, may be a good time to pick up some short positions over the next 2-3 days.
Vixfutures
VIX FUTURE EXPIRATION JULY 22: short-term bearish impact on SPXCredit for this research goes to Nomura's Charlie McElligott - as reported by Zerohedge.com tonight.
Tomorrow (I'm in LA so it is just before midnight here) or today (depending on your timezone and when you see this post) Wednesday, July 22 is VIX Futures expirations day.
Last expirations and next expirations for 2020:
22 January 2020
19 February 2020
18 March 2020
15 April 2020
20 May 2020
17 June 2020
22 July 2020
19 August 2020
16 September 2020
21 October 2020
18 November 2020
16 December 2020
I have taken the liberty of putting an arrow on past SPX trading days which coincided with VIX Futures expirations in 2020 including the next ones on July 22 and August 19 (though we don't obviously know where the index will be on Aug 19).
As can see the short-term impact has been mildly bearish for a few days or extremely bearish.
Notably, the all-time high of Feb 19 was one such VIX Futures expiration day.
If history is any indicator we should expect Wednesday and for a few days after at least - to be bearish for the SPX.
It is also to be noted VIX on a relative basis for 2020 is at low levels and sitting just above support where it sat on June 8th at the previous peak of the SPX (and the bear market rally end for the Dow and Russel 2000). It is primed to explode higher in other words.
Trade accordingly.
Cheers!
Cyrus
Indicators for UVXYThis is the UVXY at the hourly. I think I found indicators that help predict a VIX bull day.
1) The purple lines on the chart are the Bollinger Bands set at the daily scale.
2) Middle indicator is the Divergence Indicator. It's the RSI, but helps identify divergences with RSI.
3) Bottom indicator is the MACD Divergence Indicator.
Essentially, if the UVXY is or near oversold and has a bullish divergence (RSI or MACD), then a bull run happens shortly after. Whenever the UVXY touches/breaks the lower daily Bollinger Band, a bull run won't be that far away.
If this can be mastered with identifying wedge patterns, then you can make serious profits from volatility trading.
VIX ABOUT TO EXPLODE HIGHERElliot wave counts on VIX.
It calls for VIX (volatility and fear) to soon explode higher in line with my Elliotwave bearish projections on the S&P Futures (SPX500USD and SPX) and higher calls for the US Dollar Index (DXY).
See below links for Elliotwave counts just posted on S&P Futures and US Dollar Index.
RIsk OFF is about to enter the markets in a major way.
Even though I call for wave C DOWN in the S&P to reach (slightly exceed) the March lows I believe VIX will reach a LOWER High than the March highs as I see the coming wave C down in the S&P to be more orderly and less violent than the Feb and March crash in the S&P.
It is notable the VXN DID NOT MAKE A NEW LOW when the NASDAQ 100 has been making higher highs. This is a Major red flag and warning signal that the NASDAQ has gone too far. See link to he VXN and NASDAQ divergence comparison below also.
Cheers!
Cyrus
ridethepig | VIX Panic Cycle?📍 The main function of the VIX appears to be miles ahead of the relevant flows. In this sense, it itself tends to be mobile. And yet (for it has great vitality!) it is not rare to witness it display considerable activity. Namely:
1️⃣ From the initial ' Swing the Vix into Fed and Q close ' the Vix was prepared .
2️⃣ A certain elasticity, which shows itself in the 'Capitulation Waters' was appropriate to generate the energetic slingshot given the appropriate circumstance.
3️⃣ The journey looked so promising, connection breaks in Vol are usually one way express trains. Stay long.
4️⃣ If we can continue the advance in the absence of capitalism, we are set for a measured return on the expectation of normality but only with more clarity on the timing side. Once reality hits shore, the masses will realise they were sold a turd.
5️⃣ The home run!! A flawless (and serious contender for trade of the year btw) 600%+ swing from the 11/12 lows all the way to 85. Now to put the icing and sprinkles on top, we had to take care of business at the 85 highs.
6️⃣ ...here we are. After a round trip we are back to the strong support at 25 and just below the centre of the flow at 38. The power to develop knowingly here and systematically, unlike during the middle of Covid is to the buyers advantage. The effect of the cycle ending will convey more than one quarter's worth of damage. As soon as the stabilisers (stimulus) is turned off, we are heading for a Sovereign Debt Crisis .
[TVIX] June Price Target Exit Points... You're Gonna Need ThisOk people, things are about ready to boil over here.
Everyone is holding their breath and crossing their fingers that all the economic data dropping first week of June 'won't be as bad as expected' so the market will then rebound.
It's all hopes and dreams though. It's gonna be worse, decent chance of MUCH worse.
If we get to the end of June, and I have to sell off my $150 TVIX at $100 because it was all smooth sailing the whole month. So f*ckin be it. I'll hold my head high and take the L.
But I aint missing a play that could pay up to 5x (proven just two months ago) within a couple weeks when fundamentals are the worst in a century and the global economy is running on hopes and dreams lol.
What a setup.
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Today the price hit the lowest we'll see in awhile at $138 and climbed to $144 by close, that's the bottom.
I also expect that we move out of the buy zone by June 5th and begin harvest preparations.
You're probably reading this after the spike but here's the targets for the few active TVIX riders out there:
Buy Targets:
>$280 = Do not buy (risk/reward ratio starts looking substantially worse here)
$205-$280 = Okay value
$180-$205 = Good value
$150-$180 = Great value
<$150 = You're crazy like me
Sell Targets based on Volume Profile of spike two months ago:
$390 - Will sell 20% of my shares
$600 - Will sell another 20% chunk
$750 - Another 20%
$920 - Another 20%
Best Value - Final 20% trying to catch the peak :)
If at any point a peak looks imminent, prior to the estimated peak here, will dump all. Not trying to be a hero here.
Lets hope for a bountiful June harvest :).
[TVIX] Indicators and Support Pointing toward BreakoutCheckout that upward support trend from May 12th low. That is particularly interesting given the nature of the TVIX to constantly fall lower.
Lookout for ADX crossing the DPO, better the divergence the stronger the trend.
Also lookout for RVI crossing and holding just above RSI, could be a leading indicator here of upward movement. Those indicators are really both primed signaling a pretty strong buy right now.
MACD still terrifying, it's clear something has to break. I'm betting that the news dropping 1st week of June with ensure that break is downward.
I'll be looking to expand my position Thursday and probably get my last bets in Friday before close. Maybe hold till weekend but unlikely we'll need to.
Prepare for the harvest!
[TVIX] 1D, 4H, 1H and 30M All Lined Up for ReferenceMostly reference purposes here.
What an epic setup.
Buy Signals:
1. RSI flipping from buy to sell on the 1D and 4H and holding closely to the sell dashed line in the 4H or 30M
2. OBV trend change, up or down in the 1D or 4H overall but here the 1H and 30M will give quicker signals of the trend change
3. 1D VPT as RSI flipping from buy to sell and 4h holding close to sell dashed line, 1H should hold to buy dashed line at start of uptrend, 30M should be very volatile crossing both dashed lines back and forth frequently.
4. MACD on the 30 and 1H breaking through zero (We've got 3 beautiful waves in both charts that are still waiting on a fourth due anytime *cough*June*cough*), MACD lines on 1D and 4H primed to break up too
5. POC trending 30M>1H>4H>1D (This ones tricky to dial in properly but that's the idea)
There's a lot more there, just some zoomed perspective for all the TVIX riders out there.