Most recent findings from researching the three prior Bullish Sentiment Anomaly (BSA) occurrences since 2017, indicate a 100% probability the following to occur by end of 2020:
- S&P 500 to decline by 11%.
- Call options which trade VIX, VXX and UVXY to increase by 1,000% to 10,000%.
- Shares of the VXX and UVXY which mimic the CBOE’s volatility index (VIX) to increase by 50% and 100% respectively.
Additionally, the discovery of the anomaly has resulted in the development of the Bull Vix (BVX) algorithm and www.bullvix.com which is now operational. The Bull Vix’s mandate is to exclusively:
- Monitor for future BSA occurrences
- Utilize BBT algorithm’s short signals, which have powered Bull & Bear Tracker and Bear Trader alerts to trade long and short index ETFs since 2018, to send alerts to trade VIX related VXX and UVXY shares and call options for the VXX, UVXY and VIX index. Due to increases in volatility for the five weeks following BSA occurrences being highly probable the conditions for deploying call option strategies for returns of 1,000% to 10,000% within a few weeks are ideal.
Note. Until additional empirical research findings are conclusive the intention is for the Bull Vix to be exclusively utilized for the 5-weeks after a Bullish Sentiment Anomaly (BSA) occurrence. Bear Trader is highly recommended for those extended periods between BSA occurrences.
The most significant revelations from the ongoing BSA research:
- Double leveraged UVXY shares significantly outperformed S&P 500’s double leveraged SDS inverse ETF shares for the three prior BSA 5-week post anomaly periods even though both utilized same BBT algorithm powered Bull & Bear Tracker and Bear Trader short alerts.
- UVXY shares had an 88%-win ratio vs. 77% for the S&P 500’s inverse SDS ETF from utilizing the BBT Algorithm’s market short alerts.
- The lows for S&P and the highs for the UVXY occurred in either the fourth or fifth week after the occurrence of the BSA.
Note. December 11, 2020 will be the last day of the fourth week since the occurrence of the Bullish Sentiment Anomaly occurred for week ended November 13, 2020.
The cumulative gain for the UVXY for the last three post BSA 5-week periods was 433% vs. 54% for the SDS. The average cumulative gain from trading the UVXY for the past three post BSA 5-week periods was 144.3% vs. 18% for the double leveraged SDS S&P 500 inverse ETF.
The gains in the above table for the SDS and UVXY do not include the recommendation for inverse VIX related SVXY shares for when profits were taken for the UVXY during the 5-week post BSA occurrence periods. Research is now being conducted on how shares of the SVXY fared during the 5-week post BSA occurrence periods. Based on preliminary research of the SVXY we believe that the gains for the 5-week periods could be significantly higher.
The table below depicts that the BBT’s short the market or RED alerts were much more effective for trading the UVXY than the S&P 500’s doubled leveraged SDS index ETF during the five weeks after a BSA occurrence. The UVXY had an alert win ratio of 88.8% vs. a win ratio of 77.7% for the SDS for the three 5-week post BSA periods.
The chart of UVXY below depicts the potential leverage from trading the call options for VIX related securities. The spikes for the UVXY from it’s all-time lows, after the occurrence of the Bullish Sentiment Anomalies (BSA) since 2017 likely netted gains from 1,000% to 10,000% less than 60 days after the deployment of a disciplined call option trading strategy upon a BSA occurrence.
The VIX and the securities which mimic the index, including the UVXY which is depicted in the chart above, are extremely volatile. Therefore, the timing for the exits to maximize profits is crucial. For this reason, the Bull Vix is highly recommended for the maximization of profits.
The Bull Vix is a seasonal algorithm which only operates for the 5-week periods after the occurrence of a Bullish Sentiment Anomaly (BSA). For this reason, Bull Vix charges a one-time per BSA occurrence subscription fee of $49 for alerts to trade the UVXY and VXX shares and $499 for alerts to trade call options. To subscribe go to www.bullvix.com.
Due to there being a limited amount which can be invested into VIX related securities and especially call options there are and will continue to be a limited number of subscriptions available. Therefore, all who subscribe to trade November 2020 BSA occurrence are grandfathered in and will have a first right of refusal to subscribe to the next Bullish Sentiment Anomaly (BSA) when it occurs which likely be after 2021.
For more information on the Bull Vix algorithm and Bullish Sentiment Anomaly (BSA) go to www.BullVix.com.