Skip to content

VIX Rising but no spikes, yet!

April 17, 2009

VIXINDIA

Some pointers and observations:

  • VIX is rising but no sharp spikes. Intelligent participants are increasingly turning bearish, but the mass is yet to realize it.
  • The VIX calculation by NIFTY incorporates at the money options for two months rolling period. Hence it has my confidence as a pretty scientific measure of market volatility.
  • The red line is the 20 DAY EMA, notice how VIX forms a cluster around it, except at times of great panic and fear when we observe a breach of two successive resistance levels.
  • Is mean reverting about 20DAY EMA
  • Spikes as contrarian setup
  • If it breaches 51.1 levels on Monday, then we can see VIX spiking upto 70 odd levels. Or perhaps a retest of November highs too. But depends on the severity and the power of the next leg.

As readers will understand from my previous posts, as each day pass by the price action is showing me a constant rejection of 200DMA.

Interested in reading more?Subscribe to the Jump Up feed

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: