Monday 25 February 2013

Volatility Explodes

The VIX opened a little lower, putting in a classic hollow red reversal candle. As equities lost their opening gains, VIX battled higher. With a somewhat severe closing hour drop in the market, we saw the VIX explode, closing in AH trading +34% @ 18.99.


VIX'60min



VIX'daily3



VIX'weekly


Summary

The action in the VIX sure was crazy today . I don't think many expected VIX in the 17s..never mind the 19s!

We have FULLY filled the giant gap from the VIX collapse in early January.

The weekly VIX MACD cycle is now positive..and does offer a potencial 'nuclear phase'..but we need to put in a daily..and weekly close in the low 20s..first.

As it is, my best guess..we floor around sp'1480..and then at least one further major wave higher.

*I bailed on a VIX call block (and SPY puts) at 3.45pm.
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more later..on the indexes