VIX challenged its mid-Cycle resistance at 14.54 this week, breaking out above its November 15 high at 14.51.It has since made a 62% retracement.A further breakout above the Ending Diagonal trendlne suggests a complete retracement of the decline from January 2016, and possibly to August 2015.
(Bloomberg) The “VIX Elephant” has awakened. And “50 Cent” is back.
At a moment when political tumult is roiling markets, volatility trading patterns closely associated with two high-rolling, but unknown, investors have re-emerged.
First, the trader who’s known as the Elephant for making big moves in the VIX -- but who’s been surprisingly quiet in recent weeks -- returned with a vengeance to start December, buying and selling more than 2 million contracts Friday to continue betting on a modest rise in the Cboe Volatility Index. That’s three times the average daily volume for all VIX options.
To read the entire report Please click on the pdf File Below: