Disclaimer: The information found on this site is meant for educational and informational purposes only. Nothing on this site should be construed as a recommendation or solicitation to buy or sell derivatives or securities or to trade any particular strategy. Trading of derivatives or securities has large potential risk and you must be aware of and accept all the risks. Past performance of any trading system or methodology is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve performance results similar to those discussed on this website. Hypothetical or simulated performance results have certain limitations and do not represent actual trading.

Monday, April 23, 2012

VIX Moving In Line with FVE

 - I am surprised as to how closely VIX is moving in line with FVE.  I realize that the FVE model was created to provide a "fair value" level for VIX...but in the past, VIX moved considerably over or under FVE's value.  The disparity between the two was good in the sense that it provided for excellent opportunities to go long or short VIX & VIX related instruments relative to the FVE.  Unfortunately, I'm not seeing to many of those opportunities during the past several weeks.

- As for SPY, the chart shows that SPY is continuing its downtrend--having broken below the mid-term rising trendline.  While the market correction is likely to continue, the rate of the fall has not been very steep, thus would likely limit volatility from rising sharply.

No comments:

Post a Comment