VIX + Bitcoin = more of a risk on day than it appears
STRATEGY: VIX barely surged... meh. Bitcoin = leading indicator? >50% it bottomed
I am to share some unstructured market commentary today. Today is one of the days where it is apparent that the linkage between Bitcoin + digital assets and financial markets increased significantly over the past year. And given the wild moves today, I thought it appropriate to send out some post-closing thoughts (not in any particular order):
- VIX surged to nearly 26 today but ended the day basically flat
- VIX has little energy to surge higher and lower than the 28 last week
- If I "squint" I am seeing an H&S (head and shoulders) on the VIX
- If it manages to break the "neckline" ~17, VIX going to move to the low teens
- This would be very very risk-on
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