Tuesday, December 18, 2012

Volatility Indications

These have been pretty useful lately, calling the moves intraday on the last F_O_M_C, calling the move in the market here and right now the volatility ETFs like XIV, VXX and UVXY are all in a narrow, flat range which is where we most often see divergences, it's the dull market, "The kids are too quiet" effect.

Here are some charts showing volatility looks like it's getting ready for a downside move in the market (getting ready and there are 2 different things, but sometimes close enough is close enough).

 5 min VXX, a move up corresponds with a move down in the market and 3C is leading positive

 10 min leading positive

Even a 15 min leading positive, a larger relative positive and it just took out support today as well, stops cleared.

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