VIX:VXV Ratio at New End of Day High
As far as I know, I was the first person to show interest in the VXV as a market timing indicator and the first to talk about the VIX:VXV ratio when I posted on these subjects back in early December in The VIX:VXV Ratio.
Fast forward nine months and the VIX:VXV ratio has an admirable market timing record and a very strong following, here and elsewhere. Last night it set a new end of day high when the ratio closed at 1.20. So far, readings of 1.08 and above have been good long entry points. Using the same logic, a long entry at 1.20 should be an even better trade. I will be interested to see how last night’s signal turns out.
[source: StockCharts, VIX and More]
3 comments:
You'll be remembered as the inventor of VIX:VXV!
Thanks!
Agreed. This is by far my favorite timing indicator. I bought tons of October calls (VIX working against me) and futures at the close yesterday.
I'm going to subscribe to your newsletter.
Thanks for all the interesting work you do.
I vote for this indicator too, so far its working well.
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