Volatilities

Very odd day, SPX making big moves, and volatility also down (using VIX).   And Gold mesauring to 1300 see the bottom chart.

I have also used VIX/VXV which tends to predict a big move up or big down, whether it hits outside the upper Bollinger or outside the lower Bollinger. I am unsing a 2.5 BB to take out some of noise.



Just the last two days it popped the upper AND then the lower, which is rare, but then alot of things are going to be odd as the wheels start to come off the cart.

Another favorite custom indicator is what I call Volatility on Steroids or VOS.

And here is some reading stuff on VXV and VXV, from seeking Alpha, certainly better than Cramer.

http://seekingalpha.com/article/275659-the-vix-and-vxv-comparing-short-term-and-long-term-volatility

And 2 more oldies but goodies.

The Infamous Fear Factor!    Backtesting a weird Head and Shoulders.