in the news vix fear index chart - how to trade vix? What this all about..... See below. ------------------------------ Sentiment Trader has been providing data to our VIP members here, which is quite interesting. Probably one of the most interesting things we have seen this year.
(Investing and saying LETS BET long on the VIX is a "quick way to lose money) Betting against stock market volatility is one of the hottest trades in the market. But it has not been working out too well as of late..... It's also one of the most controversial, with many pundits viewing it as increasingly vulnerable to a market blowup. Sentiment trader — who has nailed the eight-year bull market at every turn — has decided its the best to be staying out of the fray completely. Having experienced considerable success simply trading on the benchmark S&P 500 index and evaluating stocks on an individual basis, hopping in to the VIX here and expecting an explosion higher, might be an exercise in 2017 deemed as pointless. Our top analysts think our view on CBOE Volatility Index — or VIX — while also covering such hot-button market topics as equity valuations, exchange-traded funds, the effect of politics on the market, and what important factor he thinks investors are missing. What we have note is a strange repeating pattern on the charts. everytime we go to 16 or 17 on the chart, the VIX just stalls and then DROPS like a rock!! Have a look at the chart we have drawn below. A strange phenomenon we call, "Twisted Fate"
One our our [ VIP clients here ] asked about low volatility and why the trade is not working....we replied: "Like so many things, that is a characteristic of a market. When people say to me that the market hasn't had a 1% run in a certain number of days, that tells me just that. It doesn't tell me anything about tomorrow or what's going to happen. No one really knows what is going to happen tomorrow or in the days ahead!!! The VIX in 2017 really isn't the fear index — it's a measure of potential volatility in either direction. Yet for some reason, people have put on the ideology that if the VIX spikes, the market's going to go down. No,.... that is not always the case....when the VIX spikes, it means the market could go either up or down a lot. If you go back to the bottom in 2009, the VIX was telling you that there were going to be another two years of a bear market. It tells you about volatility, not direction. We like to think of this as just another vehicle. It's totally meaningless with regard to the future of the market or telling you what is about to happen. Its been like that for the last 10 years In an uninteresting market, people have found that this is something you can play. It seems like VIX ETFs and [exchange-traded notes] are a quick way to lose money. And the last few months people are losing lots of money scratching their heads, without realize what we are talking about here is a very detailed subject, and needs to be talked about. DON'T MISS OUT ON OUR HOTTEST updates Click the link below.....
stock market volatility index - how to read the vix index
"stock market volatility index - how to read the vix index"
in the news stock market volatility index - how to read the vix index? What this all about..... See below. ------------------------------ Sentiment Trader notices that right now, almost no one is studying and talking about the VIX chart. So lets us get out of the gutter and talk about what is going on and what it could mean. 2 of our top analysts think this chart is bearing the brunt of what could be called an OMINOUS WARNING SIGN.... what is that?? Well to cut a long story short our - VIP MEMBERS HERE - have been doing very well this year, and we can tell you, whether you like it or not, the stock market is all about the VIX this years. Its the inverse to the stock market, so when vix goes DOWN, the market usually goes up. And visa versa. Recently not only is the VIX LOWER down, but you can see its staying down in very low lying areas. And be that as it may we have not had a HUGE VOLATILITY SPIKE for about 12 months. Now,.... if you are somewhat of a good investor and follow past trends, all this could be starting to add up, because low vix for over 12 months ....lets think back, that has not happened since 2007, when the stock market topped out and WE EXPERIENCED the global financial crisis and we experienced a HORRIFIC market crashes several months later in 2008. Here is the chart below. You can see they are suppressing the VIX here. Not only that, you can see that we have been in low periods even FRESH lows over the last few weeks, so this chart does need attention! This is quite interesting.
Look, we are not saying this is going to cause a stock market crash in the next 4 weeks. But you need to bring this to the forefront of your mind. Usually when this sort of action happens in the VIX is not a very good omen, looking back over the last 50 years of history, on the charts!. I guess time will tell this time around.....but we have marked out the different events that made the VIX spike up fast! It seems like a long time before we had a major event. Perhaps that some bad news is coming down the pipeline sooner than we expect... DON'T MISS OUT ON OUR HOTTEST updates Click the link below....
in the news stock market volatility index - vxx chart? What this all about..... See below. ------------------------------ Sentiment Trader is looking at the VIX chart and noticed some very interesting things.
We feel the market right now seems complacent but stable. We even hit new highs today.....so Let us elaborate what we are talking about, we have probably had a very good start to the year. Over the last few weeks the market has topped out a little bit, but consolidating / in a sideways pattern. Generally the markets are looking ok, but nothing has really crashed and burned, or fallen apart. So what we do want to take a look at is the VIX chart as you can see below.... Are things about to crash and burn and fall through the trap door like some out there are saying??? Well, sure that is always a possibility. But if you look at the volatility index you can see it is extremely low right now signalling to investors are a little bit complacent but at the same time the level of the overall risk or a catalyst to cause problems is missing at the moment. So its hard to determine what is going to derail the markets in the midterm!! You can see that VIX is trying to break new lows at the moment, and is very very low. Right back down at the all time lows of support. We think this is very significant given the market has been volatile the last 12 months.....
The vix has been highly talked about subject this year. If you go back before the 2008 stock market crisis you can see periods of steady growth and supported monetary policy always generated low volatility so in the broader historical context we do not think the vix here is unnaturally low. It just seems low considering where we have been coming from and when you zoom back 10 or 11 years! Due to the high markets, we do not need to be super exotic here we think there will be opportunities in the broader equity markets and equity spaces, we talked about => to our members [HERE] <= As long as you are selective. Its not a time to play pin the tail on the donkey with stocks here. That might not end up very good. Whether you are looking at developed markets such as EUROPE or USA or JAPAN we do see opportunities across the board, and that is not just at the market level, but at the sector level as well. We have posted about this earlier in the year. We could still see markets run up from here, but overall we still do remain more on the cautious side. DON'T MISS OUT ON OUR HOTTEST updates Click the link below....
in this update vix volatility index chart - vxx chart? What this all about..... See below. ------------------------------ Sentiment Trader has alot to talk about, because its been a very few big weeks for our VIP members. Its been quite a good end to the year, but what we want to take a look at and update is the VIX chart on the daily time frame. What you can see is since trump got elect the VIX has got right back down. So the wild swings have stopped. But the VIX is very low now, and this could mean, the market is susceptible to sell offs. Low vix, is high market risks, and higher vix means the market should see very nice rallies come. For us, This is quite interesting. The reason is many of the big traders on wall st, know its all about the VIX in 2016, and 2017 will be no different. 12 On Vix seems a bit low to us. As you can see everytime the VIX hit lows in the 11's or 12 that marked a significant area in terms of the market.
The S&P 500 has been coming off the highs the last few days, and the VIX would agree with that where it currently sits. DON'T MISS OUT ON OUR HOTTEST updates Click the link below....
in the news crazy vix chart - vix volatility index chart? What this all about..... See below. ------------------------------ Sentiment Trader shows a very interesting chart today.The reason is right now, at the end of 2016 after a very very violent year on the market. Everything is about the VIX. Low vix and usually that means a sell off is coming. HIGH VIX, and usually that means a strong rally is coming. This bull market seems to be continuing. That does not mean we cannot crash or sell off. Infact the VIX is a good pre-empter of that. You can see on the DAILY VIX chart below, that when trump got elected the VIX went into huge rally mode. And that was just a TRAP set for the bears. We rallied hard the days after, when investors realized HILLARY keeps lying to the people and change is a good thing. You saw the VIX sell off hard, and now we are back down at support. On the VIX, you can see that we are back down at an area where the vix normally finds a floor. But what we want to do today, is tell you if you can study the vix you can tell which way the market is about to go. Yes! While many traders think they have the secret tool, only to find months later it loses them money. You can use special tools just 1 chart, like the one below....the VIX chart to tell you where the market could be going next. Its quite powerful. Yet traders still chose to ignore it. Its quite powerful and we have market the last 3-4 big events, that happened.
The best way to explain this, is to tell you that the VIX is the inverse to the market, and it can be a real tell tale sign, of what could be happening on the market, when others do not yet know, we are talking about the novice traders. Some of the expert traders out there watch the VIX like a hawk day to day, and absolutely crush it. So when you see this chart above, you can see why. Current resistance is up at the mid 20's and support is down at about the 11 -12 region. Vix is currently sitting at 11.5. That in itself could be an important & significant level going into XMAS. DON'T MISS OUT ON OUR HOTTEST updates Click the link below....
