VIX and ES

Discussion in 'Index Futures' started by increasenow, Jul 21, 2007.

  1. Does anyone really look at the VIX to gauge ES sentiment?...specifically talking about using the VIX for daytrade set-ups..thanks!
  2. You can use the VIX for EMD, ER2, ES, NQ and YM.

    I don't use it for actual entry/exit signals.

    Instead, I only use it for Volatility Analysis to help me with deciding if the market is trending or range bound as it is occurring instead of determining such after the fact.

    It's also a good confirmation market breadth for those that use volatility analysis as part of their trade methodology.

  3. I use the VIX as a confirmation tool. The VIX is derived from options prices, so its a completely different market.

    Say if ES prices were trending up and the VIX did not reflect that by moving down, it would definitely be a cause for caution for me.
    I would probably not trade and prefer to wait for a better setup.

    Also if the VIX is near its high or low for the day, I will ignore any trading signals to the opposite side. I've gotten burned many times by jumping on false breakouts that were not confirmed by the VIX.
  4. you will note a huge upward VIX spike today...look to rebound with ES buy alert