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A Significant Divergence on a Key Day


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#1 redfoliage2

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Posted 11 February 2018 - 06:57 PM

VIX failed to make a higher high while SPX was making a lower low:

http://stockcharts.c...id=p93739963596


Edited by redfoliage2, 11 February 2018 - 07:04 PM.


#2 redfoliage2

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Posted 11 February 2018 - 07:05 PM

We should see a big drop in VIX this week.



#3 redfoliage2

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Posted 11 February 2018 - 07:17 PM

Interesting enough that SEC Rule 201 has triggered on VXX, TVIX and UVXY according to my broker IB.  It puts a restriction on short sale of the VIX ETF/ETNs.  Another indication that a big drop in VIX is in the cards...................


Edited by redfoliage2, 11 February 2018 - 07:21 PM.


#4 MaryAM

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Posted 11 February 2018 - 08:25 PM

Interesting enough that SEC Rule 201 has triggered on VXX, TVIX and UVXY according to my broker IB.  It puts a restriction on short sale of the VIX ETF/ETNs.  Another indication that a big drop in VIX is in the cards...................

.

So much for a free market. Just FIX the problem.

#5 redfoliage2

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Posted 11 February 2018 - 09:41 PM

 

Interesting enough that SEC Rule 201 has triggered on VXX, TVIX and UVXY according to my broker IB.  It puts a restriction on short sale of the VIX ETF/ETNs.  Another indication that a big drop in VIX is in the cards...................

.

So much for a free market. Just FIX the problem.

 

It's just so called a free market, but all controlled by the operators including the recent shakeout.  For the new week the game is shifted into options expiration play.  Stock options, index options, futures options, and especially VIX options.   I bet VIX calls will get flushed...............


Edited by redfoliage2, 11 February 2018 - 09:48 PM.


#6 fib_1618

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Posted 11 February 2018 - 09:48 PM

VIX failed to make a higher high while SPX was making a lower low:

http://stockcharts.c...id=p93739963596

 

As mentioned in another thread last week, this is typical of Elliott 5th waves where implied volatility always diverges with wave 3.

 

Fib


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#7 redfoliage2

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Posted 11 February 2018 - 09:58 PM

 

VIX failed to make a higher high while SPX was making a lower low:

http://stockcharts.c...id=p93739963596

 

As mentioned in another thread last week, this is typical of Elliott 5th waves where implied volatility always diverges with wave 3.

Fib

I believe the duration in the chart where the divergence occurred is within the same wave, though I'm not a fan of Elliott waves.   You must be talking about something else.


Edited by redfoliage2, 11 February 2018 - 10:08 PM.


#8 Data

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Posted 11 February 2018 - 11:52 PM

They halted trading in the volatility funds that morning.  Even though the market was higher, they were forced to buy the VIX futures to close out the fund.


Edited by Data, 11 February 2018 - 11:52 PM.


#9 fib_1618

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Posted 12 February 2018 - 07:53 AM

 

 

VIX failed to make a higher high while SPX was making a lower low:

http://stockcharts.c...id=p93739963596

 

As mentioned in another thread last week, this is typical of Elliott 5th waves where implied volatility always diverges with wave 3.

Fib

 

I believe the duration in the chart where the divergence occurred is within the same wave, though I'm not a fan of Elliott waves.

 


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#10 MaryAM

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Posted 12 February 2018 - 08:44 AM

https://www.economis...-crisis-another

 

good article