Member
Posted 12 March 2017 - 08:32 PM
VIX futures contango from the front month to the next month usually narrows to under 10% while the market is fiddling around before the market drops big. VIX contango right now is at around 13%.
The instances of the contango narrowing and market dropping big would be July 2011, August 2015, and December 2016. It even narrowed before the November elections which resulted in the crazy futures drop on election night.
At VIXcentral.com, one can view contango since 2011.
Member
Posted 12 March 2017 - 10:11 PM
Thanks. I think you meant December 2015, not 2016. December 2016 was decent contango and no real price drop. October and December 2014,and June 2016 it also warned. Once in a while it has a false alarm. It doesn't seem like its warning in here yet.
Edited by tommyt, 12 March 2017 - 10:13 PM.
Member
Posted 13 March 2017 - 07:06 AM
Thanks. I think you meant December 2015, not 2016. December 2016 was decent contango and no real price drop. October and December 2014,and June 2016 it also warned. Once in a while it has a false alarm. It doesn't seem like its warning in here yet.
You are right. That was a mistake on my part. I think this indicator has some substance to it.
Member
Posted 14 March 2017 - 12:04 PM
Contango spread is really dropping so far today...first time in the Trump rally it is flashing a bit.
