I am trying to find something bearish about the VIX

T

trc4949

If someone showed me the VIX chart but did not tell me the symbol I would say it looks like one of the most bullish chart patterns I have seen in a while...

VIX tried three separate times to fill the large opening gap of February 2020 but failed. And now it is trading up in a bull flag and a large inverse head and shoulders pattern, a revival pattern that is threatening the previous all time high.
 
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VIX prices follow a very different process from the stock market. It is much more likely to revert to an average. Traditional chart patterns are greatly distorted.

I am always bearish on the VIX. Unfortunately, being wrong is significantly more dangerous.
 
trc4949 said:
If someone showed me the VIX chart but did not tell me the symbol I would say it looks like one of the most bullish chart patterns I have seen in a while...

VIX tried three separate times to fill the large opening gap of February 2020 but failed. And now it is trading up in a bull flag and a large inverse head and shoulders pattern, a revival pattern that is threatening the previous all time high.
More...


This means absolutely nothing. It will go up only if the market crashes, but then you'd have many other ways to make more money. Buying VIX (calls or futures) right now it's like buying very expensive insurance.
 
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