Weekend Update: VIX On A Buy Signal
Anthony M. Cherniawski | Nov 19, 2017 04:11AM ET
VIX rallied from its mid - Cycle resistance at 14.59 before closing above Long-term support at 11.11. VIX is on a buy signal. The inverted Head and Shoulders formation now has a completed right shoulder giving apotential target for the next move higher when the neckline is exceeded.
(Barrons ) The CBOE Volatility Index spiked to 14.5 early Wednesday morning and is hanging out at the 13 level as of this afternoon. Meanwhile in ETF land, the leveraged ProShares Ultra VIX Short-Term Futures (ticker: NYSE:UVXY) is up more than 5% and its unleveraged sister ProShares VIX Short-Term Futures (NYSE:VIXY) notched a 2.5% gain.
Harvard Management Company took the other side of the bet on volatility, according to filings submitted to the Securities & Exchange Commission last week. Quarterly holdings documents showed that Harvard's endowment added a modest stake in the ProShares Short VIX Futures ETF (NYSE:SVXY). I wonder what they are using the ETF for? Assuming, the position remains open, Harvard Management will have to see the market remaining calm.
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