Crude Oil Volatility (OVX) - 2nd January 2024 | @ 52 Days | + 0.11%
Last trade: + 0.11% | 'A' class signal detected in CBOE Crude Oil Volatility Index. Average wavelength of 52 days over 16 iterations since November 2021. Currently troughing.
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
Kicking off 2024 and the latest down leg of this excellent periodic component in oil volatility measure, OVX, was largely flat. This suggests the imminent trough will now move up with some increased power through January. The signal is, overall, very frequency and amplitude stationary over this sample of 16 iterations since November 2021. It’s ‘A’ rating is certainly well deserved.
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: Sell - Crude Oil Volatility 11th December 2023
Entry: 11th December 2023 @ 37.64
Exit: 2nd January 2024 @ 37.60
Gain: 0.11%
Current Signal Status
Defining characteristics of the component detected over the sample period.
Detected Signal Class: A - learn more
Average Wavelength: 52.45 Days
Completed Iterations: 16
Component Yield Over Sample: 355.74% - learn more