Inflation Falling and VIX bottoming

Inflation will fall this month from 2.0…last May the change in gas prices was Apr -3.8 to +1.26 in May a positive swing of +5.  This month has fallen from Apr 3.62 to May 0.3 or a negative swing of -3.3.

Inflation Falling May

VIX also falling to bottom of range so swing up/fall in SPY will be large. This is the lowest VIX value in over 14 months.

VIX Swing

 

After VIX rises above 20 for 1-2 days, plan will be to play swing on the (close) after the VIX falls below 20. VIX rises above 20 approx. 3 times per year…

2 VIX 17 and 20

The fall is $9-10 and the rebound is $9 in the next 1-2 weeks. It does a full retracement.

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