Whilst everyone is banging on about Cryptocurrencies and the stock market...

in trading •  7 years ago 

The previous few weeks have provided a rocky time in the cryptocurrency markets with the due pullback being slightly more aggressive than the community expected. In the last couple of days we have seen a 10+% pull back in many stock indices across the globe which again many will say is long overdue after the crazy 10 year bull market and the constant grind up in price we have seen at the start of 2018.

Have you heard of the VIX?

The CBOE Volatility Index, known by its ticker symbol VIX, is a popular measure of the stock market's expectation of volatility implied by S&P 500 index options, calculated and published by the Chicago Board Options Exchange (CBOE).

Over the last 48 hours of trading we have seen a sharp spike higher in the price of this index. Charts below will show a monthly, daily and 4 hour chart.

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As you can see from this monthly chart we were sitting around multi year lows over the last few months.

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The daily really breaks it down for us more and shows us a reasonable move up at the end of jan before the parabolic move as February began.

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Just look at that spike from last night, February 5th 2018 Night time in the UK saw the price spike from 17.0 to 37.0.

Lots of talk about buying the dip in the cryptocurrency markets or dollar cost averaging the major stock indices over the long term but this little gem of a trade was one of the best so far in 2018.

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