VIX is a derivative of a derivative so why chart? Yes you can argue that as long as others believe, it's useful, but if you think about how VIX is measured you'll realize that it's the S&P and its options that determine VIX's settlement prices, not supply and demand of underlying VIX contracts. IMO VIX is mean-reverting, so big question is what is the mean? Personally I use moving averages and place my bets accordingly. As long as we are in a bear market, my model has VIX closing in a range 22.5-30 approximately 75% of the time. Good luck everybody!
CVR I and II do show Sell signal (sell S&P500) today. This makes it 4/6 CVR Sell signals in the last 2 days, must be a pretty strong sell signal.
VIX closed at 19â¦only 2% ( the LOWEST percentile !) of ppl that participated in this poll got it rightâ¦Long live the ET crowd ( the contrarians) ! J/Kâ¦SPX RV is printing 15 now and OTM skew is flattening, so I guess we are going even lower from here if last weeks action continues.
by the way, vix is 6% below 10 dma. the last time spy moved sideways/slightly down for 4-5 days after the signal.