Data & Technology
Research Reports
Report Solutions
Reports Library
Actionable StrategiesPricingCompanyContact
Log inLoginSign up
< BACK TO ALL REPORTS

VIX's unprecedented behavior

Troy Bombardia
2020-07-22
VIX has consistently trended downwards over the past few months as U.S. equities rallied. In a way, this kind of behavior is unprecedented.

VIX has consistently trended downwards over the past few months as U.S. equities rallied. VIX fell 15 out of the past 18 weeks. This kind of behavior is unprecedented:

Historical cases in which VIX fell at least 14 of the past 18 weeks were usually short term bullish for VIX over the next 1 - 2 months.

However, this scenario led to losses in the S&P over the next 1 - 2 months.

VIX term structure which compares 1-month VIX futures to 3-month futures fell to a 6 month low. 

In the past when VIX term structure went from higher than 1 to a 6 month low within the past 3 months, it was a bullish sign for VIX over the next week:

And was somewhat short term bearish for the S&P 500:

Sorry, this content is restricted to SentimenTrader members.

To read this post, please login to your account, sign up for our trading solutions or start a 30-day free trial.
LoginStart your 30-day free trial
DATA & TECH
IndicatorEdge
‍
BackTest Engine
‍
DataEdge API
REPORTS
Research Solution
‍
Reports Library
‍
Strategies
Index Trading Strategies
AI Stock Scanner
‍
PortfolioEdge
About us
Meet our Experts
‍
In the News
‍
Testimonials
Pricing
Bundle pricing
Subscribe to SentimenTrader's free newsletter
Get weekly highlights from our expert analysis, product updates, exclusive promotions, and invaluable educational content straight to your inbox. Sign up today and elevate your investing knowledge.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
© 2023 Sundial Capital Research Inc. All rights reserved.
TermsPrivacy
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.