VIX and SP500 200 MA risk (PART-1)

2 окт. 2022 г.

This weekend Bloomberg LP write “The #nyse Composite Index, which includes US stocks, depositary receipts and #realestate investment trusts, has broken multiple technical support levels including its 200-week moving average, the 14,000 mark. Now, accumulated losses could force #funds to sell more assets to raise cash, accelerating the selloff“ Well, #sp500 is testing 200-week moving average. This break has already occurred in the past, 1 in 2007 and then 2020 in the covid crisis, on both occasions a very similar event was repeated in the VIX index, in both cases when a break in the area above 30 points was consolidated, After several failed attacks, a rapid increase was observed that took the #vix from 30 to 80 points in 2008 and from 30 to 60 points in 2020. I know that it is hard for many portfolios this time, and that is why, I recommend buying VIX CALL options before this eventual scenario.

Good luck to all!!

Coming soon the second part. Where I will show the future BUY opportunity for the stock market

TVC:VIX CME_MINI:ES1! SP:SPX CAPITALCOM:US30 OANDA:SPX500USD AMEX:SPY