An SPX Vortex Suggests a Market-Wide Cyclone

31 Okt 2020

Found this little technical abnormality by accident. That's a pretty severe deviation from the VI - historical mean.


See Below for Logic Listed in Black Box:

1) IF (VI -) is currently reading an extreme all-time low

2) THEN Prob(mean reversion) is very high

3) IF (VI +) is also at all-time low

AND (VI +) broke down from 20-year sideways channel

AND (VI -) mean reverts back above sideways channel

THEN 500-Day Bearish Crossover is Highly Likely

4) IF Bearish crossover occurs

THEN History suggests a storm is coming


- Stormish Pig



SPX
VIX

17 Nov 2020

Trade aktif

Indicator is now very close to a VI - crossover.

Wear a raincoat if you go outside.

17 Nov 2020

Trade aktif

As per the harvester of profits' request:

17 Nov 2020

Catatan

^The 186-Day is preferred to the 500-Day.

Crossover is in today and a follow thru tomorrow will mean that [still-solvent] shorts will rain down on bulls in a not-so-insignificant way.