But what if the VIX drops below 13 that opens up the floor as there's no previous support? Freefall? Gold sells off huge at 3000 to mitigate volititalty fears?
@PepperstoneКүн бұрын
Due to the calculation I'm not sure tech analysis can ever be applied on the cash VIX - it could be done on VIX futures (which is what our CFD is priced from), but if viewing the cash VIX you'd need to look at the various expiries in S&P500 options vol (that feed the VIX calculation) and make a call on whether its now low enough to buy - hence it appears as if the cash VIX gets 'support' But either way, for sure, the VIX could easily trade lower in Q1 and we have to open minded to that.... if it does then we adapt our trading to that lower vol regime... I'm merely putting out a view that there is a probable chance it does move higher, for the reasons I've laid out. Not sure gold would trade lower myself in a low vol regime - if the VIX traded low due to higher risk appetite, then we may see the USD push lower, and gold may find support from that