Sunday, May 6, 2018

#VIX Review $VXX

VIX Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

VIX's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in the The Matrix for subscribers.

Subscriber Comments

VIX's tape (VIX Early Dbl DOWN▼ 17 | 1), an early double down alignment, should reach its cyclical mean in 17 days (see Matrix). While this tape is not as robust as Triple Align, it advised caution of US stock bears.

The term structure of the VIX, a reliable timing tools for US stocks, entered a risk-off phase 13 weeks ago. Probabilities of a reversal or transition to risk-on phase increase as BrST > 1. BrST = 1.2. The odds of a reversal begin rising substantially above 1.69 and 1.96. Probabilities follow normal distribution.

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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.