1-the
Volatility Outlook (VIX) June 2016During periods of risk the VIX tends to get inverted- typically during times of stress this has stay inverted for quite some time, 6 weeks after last years shock valuation from China.
When this curve goes back to a normal upwards sloping curve, this is usually a very good sign.
The US equity markets has been pricing in the UK as an 'island', the risk of Brexit is enormous.
The problem is and this is where the options market gets it right, it's going to be like watching a really boring movie in slow motion.
There are not a lot of near time trading events from an options point of view, or a risk point of view.
Borris has taken himself out, how do you really trade that? there are not a lot of really tradable events in the near-term.
The end of quarter beta chase were not as important had be not had the Brexit and market been up 9% YTD
The volatility floor, globally will rise to a higher level - it really comes down to the political dynamics in the euro-zone, if these can be contained.
Review of the current EURUSD Asian session and option LevelsReviewing the most recent PA 1-2 period patterns:
4H Bearish Pattern
Knowing the patterns of a higher time frame is very important. Sometimes they can conflict one to another, but it gives us the information of the possible correctional moves, or a start of a new direction, so basically, every time when conflict exists, you must examine a chart whether it is a correctional pattern appearence or a new direction, shall you close the existing trade or open the new one, does it give you a new oportunity or shall you wait, and also rememver, that when the monthly pattern appeared, it means that it is valid till the current month is closed, as by the price action rules, the pattern is clear only at the close of the candle or a bar.
We also have to review the range of the closed period comparing to the previous set of periods, hours, weeks, months, etc... Here, I'm showing you a range compared to 6 and 3 previous periods, NR means Narrow range, WR means wide range, the number displays a total periods reviewed, if the NR is displayed, high possibility of the range expansion, in WR case it can be opposite. at the moment here's the situation:
1H NR4
1H NR7
4H WR4
4H WR7
Also I have decided to share a Levels, that take time to count, and you can use them as a bounce levels in a direction you trade:
Option level Higher then the last month high is 1.14230
Option level Higher then the last week high is 1.14230
Option level Higher then the last day high is 1.13220
Option level lower then the last day low is 1.12410
Option level lower then the last week low is 1.12410
Option level lower then the last month low is 1.11070
Also a session (current session only) pivots:
r3 1.13795
r2 1.13364
r1 1.12932
p 1.12693
s1 1.12261
s2 1.12022
s3 1.11590
I really hope that sharing of my routine with you, will help you in your trading.
Also I really hope that in respect to my hard work, you will take time to use the data I share, you will put the levels on a chart, and will apply it to your trading.
Sincerely
Arturs Jermolickis
arthur@marenno.com
skype: marenno.business
A short - government required disclaimer:
I’m not providing any advice, and I do not guarantee any profit. What you see here is only a share of my view of the market.
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