BY ANDREW GIOVINAZZI
May 31, 2024
Yo Pit Crazies,
What is my favorite indicator? I like short term indicators versus long term indicators. It is like the tail wagging the dog. When the short term indicator starts to pop I take notice. Vol Man is riding his surfboard up the vol wave.
9 day VIX on a 3 month chart
The question is how long the Vol Wave will last?
Short Term VIX needs to keep the momentum
Mark and I made a Mortimer and Randolph Duke bet, see Trading Places, that VIX would move big post verdict. As of right now it is not moving at all as the market was likely the outcome of the DJT trial. He was found guilty but that barely caused a ripple as I write this.
9 Day VIX is very sensitive to short term movement. It closed near a peak today and it would need to make a new high Friday for VIX to keep going. I think post-number VIX tanks and gets a double now that the verdict is out.
If 9 Day VIX does not hold a bid, VIX will not either. So the short answer is likely back to normal for 2024, which is rally mode.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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