VIX - Trade Plan for VOL CRUSH ReversalAs Roll / Settle approaches for the VX M1 - M2 --- they are attempting to
fend off the 50/200 cross for the VIX... good luck riggers on the trigger.
M2 will appear to have a Gap as the Continuous Contract
Squares.
Typically we see a front run of Volatility ahead of Roll and things
pickup again after settlement as Wednesday to Friday is EOW
and decision time.
SO much depends on Yields, it cannot be overemphasized. The slightest
move there sends Equities lower rather quickly. Methodically but we see
how the Equity Complex responded to the small move at a pivotal price.
A print of 1.69 and then 1.571 spooked "them"
Were we to throw over the 1.63 level, this can simply implode on its own,
just as everyone was getting comfy with the Retracement.
Tomorrow's macro Data along with next week will be all about the Taper,
so the final hour will require a large effort to bring down the 10yr Yield and
bring up Equities, ideally, they need to close at or near the highs again... or
they are left to Globex.
Asia and the EU isn't going to be too keen on bag holding while the cost of
borrowing continues to rise.... they need this up, up, up.
The CASH/SPOT VIX traded down to 19.07 today prior to
Put buyers again bidding the lows.
We saw the VIX trade 20.00 - the month's long Pivot... eek,
again? It's one enormous magnet for Price time and again.
80 Ticks below is the Gap Fill... just fill it already... get it
over with so Price can move on.
This is not Retail, it is Hedge Funds, Insts, and Pros who are
supporting and adding Protection to offset what they could
not unload on the last Dump.
We saw the VXN Dip in under 23 to 22.89 and reverse as the
10 Yr Yield began to test 1,57 ~ currently at 1.569.
Globex will be required to gain traction again, there is another
panic shaping up, one that will catch the Herd completely off guard.
The VVIX is behaving as it should... providing a clear warning again
of what is ahead.
The next 24hours is critical, as this developed we needed to see
a few things... they have appeared.
There is a very large termor ahead.
