What is the put/call ratio? The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery...
How to trade UVXY and other VIX volatility financial instruments - Look at the 1h chart. - Once the RSI crosses 30, wait 3 days for confirmation before buying UVXY. - Monitor the markets. - You want S&P500 to be overbought. Conditions before buying UVXY: - RSI has crossed 30 and is in a downward trend - MACD descending gap is forming and widening - Buy when...
The "Moving Average Convergence Model," also known as the "MACD Model," is one of the most widely used indicators for trading endeavors. It consists of two lines representing the short term and long term moving averages. The blue line represents the 12 day short term moving average or SMA for short. Likewise, the orange line represents the 26 day long term moving...
There are two types of VIX or VIX product (i.e., VXX, UVXY, and SVXY) trades that I like: (a) "Term Structure" and (b) "Contango Drift" trades. "Term Structure" Trades "Term Structure" trades are only done in VIX, since only VIX has an underlying future (/VX) and a "term structure," with /VX futures prices generally priced at increasingly higher prices as...