VIX Buy Triggered

Just in case the featured clickbait image got you here: A VIX Buy signal probably doesn’t mean what you think it means as it’s actually relative to equities, and thus inverts on the VIX. In other words a VIX Buy signal suggests higher prices in equities and a drop in implied volatility across the board. Be this as it may – one triggered yesterday and one wonders if this market could get any stranger.

And there you have it. One close > the upper Bollinger, one back inside and finally the one yesterday below it which confirms the signal. And all that in a raging bull market and gravity apparently suspended until further notice.

But don’t blame me, I just work here. Which is why my subs and I followed instructions and went long the XIV and short the VXX. My stop on the XIV was below the recent spike low and now advances to break/even. Happy happy joy joy.

Same deal on the VXX just flipped inverse – my stop now drops down to near yesterday’s open where I entered short. We even got a little spike scare higher which ought to help defend this level. No guarantees but in this crazy market being in the plus with stops at break/even is a good way to start your day.

Shameless Plug

By the way, if you missed this or other recent entries then lower your head in shame and then head over to the sign up page to once and for all remedy your unfortunate condition.

There isn’t much going on the roster today regarding new entries but I managed to dig up a goodie for my intrepid subs:

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