Volatility Breakthrough

The long awaited breakthrough in volatility has come.

Let's consult the old school point and figure charts to see how far the increase may go.

As we can see, VIX has broken to the upside, through resistance at around the 20 level.

The next level of resistance is about 25.  How long this volatility will last is an open question, but the overall target is 30 at this point.

Setting the parameters of the chart differently give us a target of 26, so depending on how the market react to headline news, we could see this take weeks to play out or we could see a sudden move upward and volatility could remain "sticky" at a higher level.

I am playing a volatility ETF currently, but it is somewhat thinly traded so we shall see how well it behaves.

I will be taking a break from blogging for a couple of weeks to recuperate from a stressful period, but will be back near the end of the month.

All the best to my readers in the meantime.


  1. Please be well PW, and I hope what ever set back you have had in your life passes soon. Please return as time allows. Your works and opinions are greatly appreciated.

    Please take care and see you soon.



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