Opening Bell VIX.X Fear Index vs S&P 500 Index Chart Trend
Opening Bell VIX.X Fear Index vs S&P 500 Index Chart Trend Trade Understanding Stock Market Volatility (VIX) CBOE Indicator Greed Indicator CBOE Indicator Buy Bear Funds VIX S&P 500 Index Chart ^VIX CBOE Volatility Index. 3rd Trading day of options expiration week. We will be analyzing the CBOE volatility index. When we were shorting the markets in April of 2010 when we told people to go to cash. The upper end of the S&P 500 Resistance Level where up here. Basically what you want to see is when you had the big breakout move here we were putting in the tops for the VIX. We came down early in 2010 when we saw historical lows on the VIX. We’ve rallied up to these triple tops. We were adding S&P 500 Index Shorts. We’re going into a major earnings season in October.
Since we’ve had the S&P Rally complacency is setting up once again. We’re going to have a lower growth rate. You can get net long on the VIX which goes higher when there is fear in the markets. When we were shorting the market here, we look at both bull & bear instruments to trade against each other when we see the counter trends. It’s all about how do you short the S&P 500 at the right time and shorting the VIX through Put Options at the right time. We’ll be buying VIX calls up and “out of the money” based on our mathematical trading formulas.
We’ll be setting up a trade as we build out the position. We’re readjusting our “trade management” both long and short when the markets start increasing the volatility. We’re in an “options expiration week” the back half of September can get ugly for some bulls. This is a set up on the VIX that says if we don’t go lower we will looking for the VIX to go higher if support levels hold. What the banking sector will or won’t do, who cares, we’ll be gaging these markets and be sure if we are long we’ll protect ourselves to the downside.
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