Watching VIX while trading ES

[FTDK]

I recently started trading ES while keeping an eye on the VIX to get an extra idea on what direction ES might go to.

My broker (currently still CFD), is only offering VIX futures CFD, not a chart of the VIX index. Now i have also discovered that the VIX futures and VIX index can move quite different from each other.

What are other traders here watching while trading ES? The futures or the index?

 

[El OchoCinco]

Now i have also discovered that the VIX futures and VIX index can move quite different from each other.

You need to study this more to understand these products

 

[CannonTrading_Ilan]

Bonds, NQ.

 

[FTDK]

Bonds, NQ.

I have been watching the NQ as well, however in found this more distracting instead of being helpful.

I will take a look at the bonds!

 

[FTDK]

You need to study this more to understand these products

You mean study why there is a difference between Vix index and Vix futures? I have a basic knowledge as why they can move different from each other but i will study it more.

I was just wondering which would be better to watch against the ES.

 

[MarkBrown]

whats the purpose never seen any value in vix at all.

 

[lindq]

You mean study why there is a difference between Vix index and Vix futures? I have a basic knowledge as why they can move different from each other but i will study it more.

I was just wondering which would be better to watch against the ES.

More often than not, the VIX is a lagging indicator. You can't count on it to lead the ES.

 

[guru]

You mean study why there is a difference between Vix index and Vix futures? I have a basic knowledge as why they can move different from each other but i will study it more.

I was just wondering which would be better to watch against the ES.

VIX Futures price is based on future VIX index/price projection, so they converge towards the same price at futures’ expiration. When VIX index is too low then VIX futures may be a little higher due to the unknown volatility in the future. When VIX index is high then sometimes futures may be lower based on expectation of things calming down later.
Different VIX futures (expiring at different dates) may also indicate various levels of volatility expected in the future.

 

[MarkBrown]

More often than not, the VIX is a lagging indicator. You can't count on it to lead the ES.

what people really need to know is when to trade long and when to trade short, that is what they need to focus on. when i hear vix my eyes roll in flashback's of countless hours exhausted with a cray no less which is like 1mm man lifetimes, lol.

 

[nooby_mcnoob]

It's helpful to look at the ratio of forward monthvs current month VIX futures