Quad 4: VIX into SILVER

12 בספט׳ 2020

This graph is a composite of the SP500 (with a 2 std deviation linear regression). It also contains graphs of VIX, put/call ratio, and OIL. Observations: The put/call ratio peaks and signals the future peak in VIX. After VIX peaks, SILVER bottoms (in March is was two days later). OIL has fallen below its 50dma and although a bounce is expected from oversold RSI, it should continue its decline. If it does, credit conditions should tighten (HYG) and deflation and a lower GDP should follow (setting up Quad 4). Silver should fall with equities. Strategy: ride the VIX peak (signalled by the put/call ratio) and then transfer into SILVER. **not investment advice, do your own research. Comments very much welcome**

12 בספט׳ 2020

עסקה פעילה

The two histograms below the graph are 1. SPX correlation to USOIL, and 2. SPX correlated to SILVER