It’s kind of funny but I’ve noticed that within the last week at least 5 different fee based advisory services have touted their VIX based systems as high probability trading models. I was posting about the forensic utility of the VIX over 3 years ago so I guess main stream has finally caught up. The BZB Rotator (Telechart) was developed as a first glance type of tool to quickly evaluate leaders and lagers in the volatility game using VIX as a baseline. Note that Volume, Short Interest and Beta columns displayed in other Rotator models are not present here since the bulk of the components are indices. VXX is the only directly tradeable issue here although options can be transacted on VIX. Going foward, this Rotator will provide the background for another VXX PDQ Dashboard . . . in this case based entirely on volatility indices. The Volatility Rotator ranks volatility in the various sectors and provides a dynamic barometer of momentum rotation in the underlying sectors relative to a S&P500 baseline. We’ll explore a few ways to use this easy to set up tool in future posts.
Related posts:
