Crude Oil Volatility (OVX) - 26th January 2024 | @ 52 Days | - 4.56%
Last trade: - 4.56% | 'A' class signal detected in CBOE Crude Oil Volatility Index. Average wavelength of 52 days over 16 iterations since November 2021. Currently peaking / moving down.
Instrument Summary
The OVX, or CBOE Crude Oil Volatility Index, measures the market's anticipation of future fluctuations in crude oil prices. It is calculated based on the prices of options contracts for oil, which are used by investors as insurance against price swings. Higher OVX values indicate increased expected volatility, reflecting uncertain market conditions, while lower values suggest a more stable outlook. The index provides valuable insights into investors' sentiment and risk perception regarding oil prices.
ΣL Cycle Summary
This prominent short term wave did not gain more amplitude from the most recent trough back in early January, as hoped for by volatility bulls, meandering along in a largely neutral to bearish up leg. The next trough is due mid February and this wave, losing power across the whole sample, will need to demonstrate it’s efficacy to maintain the ‘A’ rating over the next couple of iterations.
Trade Update
See also: Live ΣL Portfolio & History
Summary of the most recent trade enacted with this signal and according to the time prediction detailed in the previous post for this instrument, linked below.
Type: Buy - Crude Oil Volatility 2nd January 2024
Entry: 2nd January 2024 @ 39.05
Exit: 26th January 2024 @ 37.27
Gain: - 4.56%
Current Signal Status
Defining characteristics of the component detected over the sample period.
Detected Signal Class: B - learn more
Average Wavelength: 52.21 Days
Completed Iterations: 16
Component Yield Over Sample: 375.70% - learn more