VIX volatility index below $10 and flashing buy...almost. :-)

in queen •  8 years ago  (edited)

Half of my short term buy signal was generated for the VIX volatility index into the close today, Th 6/1/17. The SPY and QQQ after hours trades brought each to highs that likely won't get rectified "properly" tomorrow. So I'd be surprised if there was a big wave of selling tomorrow. They could open the market lower for a "decent" drop but then bring it right back up very quickly. That would be the only way I would see the compooterized trading wizrds of Goldman Sux getting the final tops in place before this major move down that is coming. Here's 10 day chart showing the initial leg of my buy signal on the VIX. There is no longer any minor support below (created by lows set in the past 7 years) so a strong open lower on the VIX would put it into a situation where lower lows begat lower lows.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=vix&x=50&y=22&time=18&startdate=1%2F4%2F1999&enddate=2%2F18%2F2017&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1024&lf2=2&lf3=8&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9

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VIX derivative UVXY has already generated a short term buy signal. I'd have little fear of buying even this level and then scaling down if it fell another 20%. If it does rally strongly on teh open I would sell that rally. You should too. But I'll end up with a better % gain than you. So go find your own VIXen. :O