Volatility Watch

We are at a very interesting point in the long cycle. This does not mean that there is going to be a crash. It does mean that the probability of upside is very limited until we have a blow-off top. Some of the short volatility crowd are quietly taking the other side now. The next four weeks from now is when we are likely to see increased volatility on a statistical basis. When there is record complacency is when you need to be most alert.

“The early bird gets the worm, but the second mouse gets the cheese.”

VIX daily showing an increase in implied volatility in the options market.

UVXY is forming a base.

VXX 4hr MACD is crossed up. Price forming a base.

SVXY daily inverse VIX ETF very over extended. Looking for a cross down of price on the supertrend.

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