Chart of the Week: Getting Paid to Wait

After the market crash during the pandemic, volatility has been slowly drifting back to “normal.”

My chart of the week is an inverse of VIX which is commonly referred to as the volatility index and my ticker is ProShares Short VIX Short-Term Futures ETF (SVXY).

Since SVXY is an inverse, that means it goes up when VIX goes down.  

But SVXY also goes up when VIX just stays flat.

My chart of the week shows that every time SVXY gets a pullback greater than about 15% we see a bottom form on SVXY and then a strong rally right back to the prior high from where it just corrected.

This is a repeatable pattern or an “echo” in the market.

I love finding repeatable patterns that you can trade over and over.

And for those of you that only want to look at 1 ticker like this every day for a trade you should check out my Opening Bell Alerts strategy.

Have a great week!

Jeffry