Thursday, April 18, 2013

A VIX Fortune Teller?

Fortune-telling is the practice of predicting information about a person's life. Could it also be applied to your trading account? 

The date was November 8, 2012 when I spotted a potential mirror pattern in the VIX. I've been monitoring it ever since and thought that it might be appropriate to update the chart. If you missed the original commentary, read it here at: http://bit.ly/S0ausx




Fast forward, volatility remains low. However should the March low of 11.05 prevail in what appears to be a mirror image of the previous saucer (rounding bottom) pattern ... volatility should pick up. The question to ponder is whether the tea leaves forecast a low in 2015 for the broader market or is this pattern a fraud.

I guess we'll have some time on our hands before we make that distinction!


Best of Trading


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