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Two Day VIX Spike
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Two Day VIX Spike

Two Day VIX Spike

by MoleNovember 1, 2011

My hats of to SentimenTrader. Today Volar will plagiarize as I am quite busy. Jason does great work…

A “double jump” of 15% or more in the VIX has happened only 6 other times in its history.  The table below shows each occurrence, along with the performance in the S&P 500 in the days following.  It had a perfect record the following day, and still mostly positive longer-term.”

There were 22 times that the VIX jumped 10% or more for two consecutive days.  Following those, the S&P was higher the next day 17 times, a 77% win rate.  It was still positive a week later 19 of the 22 times, averaging +1.2%, and also a month later, averaging +2.0%.”

Best of luck, unbiased trading.

-Volar


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About The Author
Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.