Use VIX To Trade The Fed
Hey Traders, For the first time in months, the Option Pit VIX Traffic Light has remained red for more than one day. This is in spite of the market falling on Friday … So what gives? Are we headed for an extended rally back to all-time highs? Obviously this is the question on everyone’s mind […]
Could The S&P 500 Keep Moving Higher?
The Option Pit VIX Traffic Light Is Red: Volatility is likely to decline. Hey Traders, Thursday’s rally was different from the rallies on Tuesday and Wednesday. For starters, we came within a hair of 4,000 in the S&P 500 (Ticker: SPX). With the S&P 500 up 1%, the VIX dropped almost as much on Thursday […]
The VIX Is Lying To You.
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move. Hey Traders, On Tuesday, the S&P 500 (Ticker: SPX) rallied 105 points, and on Wednesday, the S&P 500 closed up 23 points. But … underneath the surface level “falling VIX,” there is something you need to know … VIX is wrong. The […]
If This Falters, We Could See Blood.
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move. Hey Traders, On Tuesday, the S&P 500 (Ticker: SPX) rallied 105 points. This is the biggest move – up or down – since June 13th. Not intraday, but close-to-close. Yet the VIX only fell 0.80 points. Why? First, remember that volatility is […]
The VIX’s Last Gasp?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing. Hey Traders, For a second there, the Option Pit VIX Traffic Light was red. But then … Monday happened. The S&P 500 (Ticker: SPX) went from “up 30” to close down more than 30 points. In the process, the intraday movement was […]
Forget July Futures – Watch This Instead.
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing. Hey Traders, The Option Pit VIX Traffic Light briefly flickered to red … And when markets opened on Monday, it certainly looked like red light conditions. Lately, “red light” conditions have been where I have seen traders stepping in to buy .. […]
Has VIX Topped Out? Here’s How To Trade It.
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing. Hey Traders, On Thursday, the market looked like it was going to tank. Bank earnings … really bad. Producer price index (PPI) … really bad. But after testing 3750, the S&P 500 (Ticker: SPX) caught a bid … […]
There’s Only One VIX Trade Right Now
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, On Wednesday, we saw the S&P 500 (Ticker: SPX) try to tank … It then rallied all the way to green on the day … Only to end the day down 17 points and to close right at 3800. […]
Time To Move On VIX?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move. Hey Traders, The Option Pit VIX Traffic Light is still yellow … but only barely. It is teetering on turning red … but we are not quite there yet. In the meantime, it looks like traders are starting to enter the VIX […]
Did This VIX Indicator Reach A Bottom?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move. Hey Traders, We have been watching a particular VIX indicator very closely over the last few weeks … It has been sinking lower … But did it reach a bottom? On Friday, the VVIX – the VIX of VIX – ended at […]