VIX Counterattack? 8/26/2020
تم تحديثه
VIX at the daily view.
Well, I did say that a VIX jump would start around August 26th. Looks like I still got it.
Honestly, I was getting a little worried yesterday too. The VVIX was hovering around 101. However, by the end of the day, the VVIX reclaimed its support above 105. The next step for the VVIX is to reclaim 110 or above which is the conventional volatility zone.
The VIX still hasn't played out its bullish divergence at the RSI. It also established an uptrend... so far. It rose today due to the insane amount of calls/longs demanded for the FATMANG stocks. Furthermore, the skew for volatility flattened just slightly. Does that mean a collapse is tomorrow? Probably not.
That's just the VIX acting as a greed gauge. Despite its infamous nickname as the fear gauge, the VIX can also rise and warn that excess greed is present.
I've noticed that a lot of permabears (VIX wannabes) think the VIX is rising due to news or some magical way to measure fear. Yeah, that's an automatic red flag in my view... for them. That tells me that they really are trading based on their emotions and didn't bother researching why the ES and VIX are rising together.
I think there is more of this VIX jump left tomorrow. If the VIX brings back the VVIX well above 110, then the VIX just made one great counterattack against such high liquidity.
Well, I did say that a VIX jump would start around August 26th. Looks like I still got it.
Honestly, I was getting a little worried yesterday too. The VVIX was hovering around 101. However, by the end of the day, the VVIX reclaimed its support above 105. The next step for the VVIX is to reclaim 110 or above which is the conventional volatility zone.
The VIX still hasn't played out its bullish divergence at the RSI. It also established an uptrend... so far. It rose today due to the insane amount of calls/longs demanded for the FATMANG stocks. Furthermore, the skew for volatility flattened just slightly. Does that mean a collapse is tomorrow? Probably not.
That's just the VIX acting as a greed gauge. Despite its infamous nickname as the fear gauge, the VIX can also rise and warn that excess greed is present.
I've noticed that a lot of permabears (VIX wannabes) think the VIX is rising due to news or some magical way to measure fear. Yeah, that's an automatic red flag in my view... for them. That tells me that they really are trading based on their emotions and didn't bother researching why the ES and VIX are rising together.
I think there is more of this VIX jump left tomorrow. If the VIX brings back the VVIX well above 110, then the VIX just made one great counterattack against such high liquidity.
ملاحظة
Projected dates of Aug 26 afternoon to Aug 27 came true.
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