Netflix is a subscription streaming service with hundreds of millions of paid memberships in more than 190 countries. The shares rose over 30% from February lows, then fell nearly 4% and moved below a technical level. The price dropped under the 50% midline of a rising parallel channel at $100.26. The share price is also testing the 27 February low wick at $90.58, which is being used as a near-term reference point. A daily close below $90.58 would point to further downside risk. The next levels discussed are $87.60, then $84.63, and then $75.01, which matches the February lows. On the upside, the price would need to close back above $100.26. After that, another level sits near $104.54, linked to a declining trendline from the July 2025 highs. The immediate focus is whether the share price holds above $90.58 by the close. The levels listed above are presented as the next markers if the price moves lower, while $100.26 remains the key level to regain. As we recall, this time in 2025 saw significant debate as the stock broke below the critical $100 channel midline, testing traders’ resolve. The key question then was whether the drop below the $90.58 wick low was a temporary dip or the start of a serious downturn. That period of uncertainty proved to be a crucial test for the stock’s underlying strength. That pullback toward the mid-$80s last year ultimately marked a significant buying opportunity before the stock began its impressive climb. Now, with the company’s latest earnings report from January 2026 showing subscriber numbers have surged past 280 million, the fundamental picture is far stronger. The successful global expansion of the ad-supported tier has clearly silenced many of the concerns we had back in early 2025. For traders today, this history lesson highlights the value of using dips to establish bullish positions in a strong name. With the stock now trading around $615, selling cash-secured puts or bull put spreads on any pullbacks toward the 50-day moving average offers a way to collect premium. This strategy capitalizes on the expectation that strong underlying support will hold, just as it eventually did when the stock consolidated above $84 last year. We should also consider that implied volatility, while lower than during the uncertainty of 2025, still presents opportunities for premium sellers. Given the stock’s powerful trend, any minor sell-offs are likely to be met with buying pressure, making short-duration options strategies attractive. Remember how bounces were viewed as selling opportunities back then; now, dips are being treated as buying opportunities until the trend shows signs of breaking. The key technical levels have obviously shifted, but the principle remains the same. Instead of watching the $100.26 midline from last year, we are now focused on major psychological and technical support near the $590 level. A decisive break below this area on high volume would be the new warning sign, much like the break of $90.58 was the immediate tell for traders in 2025.

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The Trade Desk (TTD) is a programmatic advertising technology platform used to buy digital ad space across the open internet. Its share price peaked near $56 in October 2025 and then moved into a steady downtrend. A descending trendline from the October 2025 high has acted as resistance on repeated rallies. That trendline now meets the current price area around $23–$24. Support has formed at $21.10, where the price stabilised in early February. From there, it rose towards $32–$33 before falling back again. A key point is whether the price can deliver a confirmed daily close above the descending trendline. If that happens, the next area to watch is $28–$30. If the price fails to close above the trendline, attention returns to the $21.10 support level. The support has already been tested once, and another test would raise the chance of a break. While the trendline remains intact, the downtrend continues. We remember watching that downtrend from the October 2025 highs, which pinned the price down around $23. That key support at $21.10 was tested, and as we feared, it eventually gave way under pressure. The sellers clearly won that battle, breaking the stock down to a new low near $18 last month. The breakdown was confirmed following the Q4 earnings release in February, which showed revenue growth slowing to just 18% year-over-year, missing the street’s expectations. This is being tied to recent government reports showing a 0.5% contraction in retail sales, signaling a broader pullback in advertising budgets. The stock is now attempting to stabilize around the $20 mark, well below its old support. For traders who believe this weakness will continue, buying puts with strike prices around $18 or $17 offers a clear way to play further downside toward the recent lows. Selling out-of-the-money call spreads, like the April $22/$24 spread, is another option to collect premium while betting that the old $21.10 support level now acts as firm resistance. This strategy benefits from both a drop in price and the passage of time. If we believe the selling is exhausted and a new range is forming between $18 and $21, selling cash-secured puts below the recent low, perhaps at the $17.50 strike, could be a way to generate income. This approach expresses a view that the stock will not make new lows in the coming weeks. A more aggressive bullish play would involve buying call debit spreads to define risk, targeting a potential rebound toward that broken $21.10 level.

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DocuSign (DOCU) is trading flat today. After reporting earnings after the bell on Tuesday, the stock opened about 3% below its pre-earnings price. During the next session, the share price moved higher through the day. It finished that session in positive territory. On the daily chart, the stock is trading in an upward sloping parallel channel. This type of channel is often treated as a bearish pattern, with price rising inside a fixed range. One approach is to wait for a confirmed break below the lower edge of the channel. A second approach is to watch for a pullback towards the lower boundary and use that area for a short entry. DocuSign is a digital agreement platform for electronic signing, sending, and managing documents. It is used by individuals and businesses for remote-friendly workflows. DocuSign’s recent strength after its earnings dip is deceptive. While buyers stepped in to push the stock positive, we are focused on the bigger picture. The stock is grinding higher within an upward sloping channel, which is typically a bearish formation. For derivative traders, the primary strategy is to wait for a confirmed breakdown below the channel’s lower trendline. A decisive break would be the signal to consider buying put options, perhaps with expirations in late April or May 2026. This approach waits for the bearish pattern to be validated before committing capital. A more anticipatory approach involves watching for a retrace back toward the lower boundary of this channel. Traders could use that area to initiate a short position by purchasing puts with a shorter-term expiration. Alternatively, selling out-of-the-money call spreads could be a way to bet against a significant move higher while collecting premium. This technical weakness is echoed by fundamental pressures we’re seeing in the market. Reports from late 2025 highlighted increased competition from AI-native contract platforms, which are starting to erode market share. We also saw Bureau of Labor Statistics data showing a slowdown in business services spending, a key driver for DocuSign’s growth. Looking back from our perspective in 2025, we saw similar bearish channel patterns form in other SaaS stocks right before the sector-wide pullback in late 2023. Currently, options market data supports this cautious view, with the put-to-call ratio for DocuSign hovering around 1.2. This indicates that more bets are being placed on a downward move. Regardless of the chosen strategy, risk management is the most critical element. The post-earnings buying pressure shows there is still support for the stock, so no breakdown is guaranteed. Using defined-risk positions like buying puts or using spreads helps protect capital if the pattern fails to resolve to the downside.

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Argentina’s month-on-month trade balance was $788m in February. This was below the expected $971m. The result was $183m under the forecast. The data point refers to February.

Trade Balance Miss Pressures The Peso

The February trade balance miss signals weaker than expected dollar inflows for Argentina. This puts immediate pressure on the Argentine Peso (ARS), increasing the likelihood of depreciation in the short term. We are now watching for increased volatility in the ARS/USD currency pair. For derivative traders, this suggests positioning for a weaker peso in the coming weeks. We are looking at ARS futures or buying put options as a direct way to capitalize on potential currency declines. Non-deliverable forwards are already pricing in a 2-3% slide over the next 30 days, suggesting this sentiment is building. The lower surplus could stem from a slowdown in agricultural exports, a key economic driver. Early reports on the soy harvest have been mixed, and any further negative news could weigh on the Merval index. We saw a similar dynamic in the fourth quarter of 2025 when weaker corn prices led to a market pullback. This makes buying put options on the Global X MSCI Argentina ETF (ARGT) an attractive hedge or speculative position. Key agricultural stocks like Cresud (CRESY) could also see increased bearish option activity. We will monitor export data for the first half of March closely for confirmation of this trend.

Sovereign Risk And Reserves In Focus

This trade data also impacts sovereign risk perception. A tighter supply of dollars makes servicing foreign debt more challenging, which could cause credit default swap (CDS) spreads to widen. We’ve already seen 5-year CDS spreads tick up by 10 basis points to 1380 bps this morning on the news. However, we must balance this against the central bank’s strong reserve accumulation, which has been the main positive story. The BCRA has added over $2 billion in reserves since the start of the year, providing a significant buffer. A continuation of this trend could easily offset the negative sentiment from one month of weak trade data. Create your live VT Markets account and start trading now.

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USD/CHF fell 0.31% to 0.7906 in Thursday’s North American session, despite the Swiss National Bank’s verbal intervention aimed at weakening the Swiss franc. Broad US dollar weakness kept the pair under pressure. On Wednesday, buyers appeared near 0.7830 and pushed the pair higher. On Thursday it reached an eight-week high of 0.7957, briefly moving above the 200-day simple moving average at 0.7951.

Key Technical Inflection Levels

After failing to hold above that level, USD/CHF pulled back towards 0.7900. The Relative Strength Index suggests bullish momentum could return if buyers move the pair back above 0.7950. If the pair drops below the 100-day simple moving average at 0.7897, it may test the 50-day simple moving average at 0.7800. Further downside would bring focus to the 0.7760 low from 6 March. Looking back to this time in 2025, we saw the USD/CHF pair struggle at the 200-day moving average despite the Swiss National Bank’s efforts to weaken its currency. The market was testing trader conviction around the 0.7900 handle. This period of consolidation created uncertainty about the dollar’s strength against the franc. The SNB’s verbal intervention was a prelude to concrete action, as it delivered a surprise 25-basis-point interest rate cut on March 21, 2025. This was the first major central bank to ease policy in that cycle, a move justified by Swiss inflation falling to a low of 1.2% in February 2025. That decision proved to be the catalyst that broke the technical stalemate.

Positioning For Policy Driven Volatility

Following the rate cut, the pair decisively broke above the 0.7957 resistance level and did not look back for several weeks. Implied volatility in USD/CHF options surged over 30% in the days following the announcement. Traders who had positioned for this break using long call options saw significant gains. Today, we should look for signs of a similar setup, with central bank policy divergence being the primary driver. Considering the current quiet trading, purchasing out-of-the-money call options on USD/CHF offers a low-cost way to position for a potential sharp upward move. This strategy limits our downside risk to the premium paid for the options. For those anticipating a slower grind higher, selling cash-secured puts below key technical levels like the 50-day moving average could be a sound strategy. This allows us to collect premium while setting a more favorable entry point if the pair experiences a temporary pullback. The key is to capitalize on low volatility before any central bank surprises. We must remember how the technical picture in 2025 warned of potential weakness if the pair dropped below the 100-day SMA at 0.7897. Any break of a similar long-term average now should be a signal to reduce bullish exposure. We can use put options as a hedge to protect our positions against a sudden reversal. Create your live VT Markets account and start trading now.

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The US Dollar Index (DXY) fell below 100 and traded near 99.40 after the Federal Reserve interest rate decision. Jerome Powell said higher energy prices are likely to lift inflation and delay rate cuts. EUR/USD rose to a one-week high near 1.1560 after the ECB left rates unchanged: 2.00% deposit rate, 2.15% refinancing rate, and 2.40% marginal lending rate. The ECB referred to inflation risks linked to the Middle East war and near-term effects on growth.

Central Bank Signals And Major FX Moves

GBP/USD traded near 1.3400, also at a one-week high, after the Bank of England kept rates at 3.75%. The MPC expects inflation to keep rising amid the Middle East war, while Andrew Bailey said policy should remain on hold. USD/JPY fell to an eight-day low at 157.80 after the Bank of Japan held rates at 0.75% on an 8–1 vote. One member dissented and proposed a hike. AUD/USD rose to 0.7060 after recovering about half of Wednesday’s losses, supported by high domestic inflation and the RBA stance. WTI traded at $94.60 after topping $100 earlier, and gold fell to $4,502 before trading at $4,615. Friday’s data includes the PBoC CNY rate decision, the EUR Producer Price Index (YoY) for February, and CAD Retail Sales (MoM) for January. Looking back at this time in 2025, we saw a world of hawkish central banks bracing for inflation driven by energy prices and geopolitical conflict. Fast forward to today, the landscape has shifted as inflation has cooled significantly across the board. For instance, recent data shows Eurozone inflation is now tracking near 2.5%, a far cry from the upside risks the European Central Bank feared a year ago.

How The Macro Backdrop Has Changed

The US Dollar Index, which dipped below 100 back in March 2025, has since shown considerable strength and is now trading around the 104.25 level. This reversal suggests that while the Federal Reserve has begun to ease policy, the US economy has remained more resilient than its peers. Consequently, pairs like EUR/USD and GBP/USD have pulled back substantially from their 2025 highs, reflecting this renewed dollar dominance. Last year’s panic over WTI crude breaking $100 per barrel seems like a distant memory, with prices now hovering closer to $78. The feared supply disruptions did not fully materialize, and demand has softened in line with the global economic slowdown. This week’s Energy Information Administration report showing a crude inventory build of over 2.5 million barrels confirms this trend of easing supply pressures. Gold experienced a sharp sell-off a year ago, tumbling to the $4,600s as central banks held firm on high interest rates. With the subsequent pivot toward monetary easing and lower real yields, the appeal of non-yielding bullion has returned with force. As a result, we’ve seen gold rally significantly from those 2025 lows, pushing well above the $5,000 mark in recent weeks. For derivative traders, this means the strategies that worked in early 2025 are likely inverted now. The high volatility in energy has subsided, suggesting that selling premium through strategies like iron condors on WTI could be more profitable than the directional bets of last year. In currencies, fading dollar strength on any further signs of Fed easing is a more viable approach than positioning for the broad dollar weakness we saw this time last year. Create your live VT Markets account and start trading now.

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AUD/USD rose about 0.47% on Thursday as the US Dollar weakened. US crude oil fell 4.21%, adding pressure to the US Dollar, while the pair traded near 0.7050. The chart shows consolidation with a mild upward bias, marked by higher highs and higher lows. This pattern would fail if the pair drops below the 3 March daily low of 0.6944.

Technical Bias And Key Levels

The Relative Strength Index remains bullish, though there are still downside risks. A move above 0.7100 would put focus on 0.7123 (18 March high), then 0.7187 (yearly high), followed by 0.7200. If AUD/USD falls below the 50-day Simple Moving Average at 0.6981, it may retest 0.6944 and then 0.6900. Key drivers of the Australian Dollar include RBA interest rate settings and inflation targets of 2–3%, plus quantitative easing or tightening. Other drivers include China’s economic performance and Australia’s trade balance. Iron ore is Australia’s largest export, worth $118 billion a year based on 2021 data, with China as the main destination. Looking back to this time in 2025, we saw a bullish structure forming for the Aussie dollar as it pushed past the 0.7000 mark. Today, the situation is more complex, with the pair consolidating around 0.6650. The clear upward momentum we saw then has given way to a more sideways market heading into the second quarter of 2026. A key driver remains the interest rate differential, which has evolved since last year. We’ve seen the Reserve Bank of Australia hold its cash rate firm at 4.35%, while the US Federal Reserve has begun a cautious easing cycle that started late in 2025. This narrowing policy gap provides a fundamental support for the Aussie that should limit significant downside in the weeks ahead.

Macro Drivers And Volatility Setup

We must also watch China, as its economic health directly impacts the Aussie through trade and commodity prices. February’s manufacturing PMI data was a mixed bag, coming in at 49.9, which shows the recovery there is still fragile. This has kept a lid on iron ore prices, which are hovering near $115 per tonne after failing to break past the $130 resistance level seen earlier this year. Given this backdrop of supportive interest rates but questionable Chinese demand, implied volatility in AUD/USD options could be undervalued. A strategy to consider would be buying long-dated strangles, which would profit from a significant price move in either direction before the end of the second quarter. This allows us to take a position on a breakout without betting on the specific direction. The key risk remains a sharper-than-expected global slowdown, which would weigh heavily on a risk-sensitive currency like the Aussie. Traders should use the year-to-date low around 0.6510 as a key level of support. A sustained break below that could signal a deeper move down, invalidating the current range-bound thesis. Create your live VT Markets account and start trading now.

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Gold (XAU/USD) fell more than 4.5% on Thursday as US Treasury yields rose amid concerns about high energy prices. It traded at $4,588 after dropping from a daily high of $4,867. Several major central banks held interest rates this week, including the Bank of England, the European Central Bank, the Bank of Japan and the Federal Reserve. The Fed kept rates at 3.50%–3.75% in an 11–1 vote, with Stephen Miran backing a 25-basis-point cut.

Fed Outlook Drives Gold Volatility

The Fed’s projections show one rate cut in 2026 and one in 2027. It forecast 2026 US growth at 2.4% (from 2.3%), core inflation at 2.7% (from 2.5%), headline PCE inflation at 2.7% (from 2.5%), and unemployment steady at 4.4%. US initial jobless claims for the week ending March 14 fell from 213K to 205K, versus expectations of 215K. The 10-year Treasury yield rose by nearly three basis points to 4.289%, while the DXY fell 0.7% to 99.52. Money markets price no Fed cut in 2026, with the first move expected in the first half of 2027. In the region, Iran attacked Qatari gas facilities, damaging 2 of 14 LNG trains and 1 of 2 GTL facilities, and raising the prospect of force majeure of up to five years for LNG supplies to Italy, Belgium, Korea and China. Technically, the 100-day SMA at $4,577 is a key support; a daily close below it may bring $4,500, then $4,402 and $4,200, with the 200-day SMA at $4,060. Resistance levels include $4,650 and $4,841.

Rates Remain The Dominant Narrative

The sharp drop in gold shows that rising interest rates are the main story for now. With the 10-year Treasury yield at 4.289%, holding a non-yielding asset like gold becomes more expensive. We should watch the 100-day moving average at $4,577 very closely, as a break could trigger more selling. The Federal Reserve’s decision to hold rates is not a surprise, given the strong jobs data and sticky inflation. We saw a similar situation back in 2022, when aggressive rate hikes caused gold to fall nearly 20% from its peak despite high inflation. The market now pricing out any rate cuts for 2026 suggests traders believe the Fed will stay firm for longer than expected. For the coming weeks, buying put options on gold futures seems like a prudent strategy to capitalize on further downside. This gives us exposure if gold breaks below key support levels like $4,500 and heads toward $4,200. It’s a defined-risk way to follow the current strong downward momentum. However, the attack on Qatari gas facilities is a serious inflationary threat that could change everything. We remember how the energy shock in 2022 sent European natural gas prices soaring by over 200%, destabilizing markets. This conflict could easily escalate, creating a panic that sends money flooding back into gold as a true safe haven. This high level of uncertainty means volatility is likely to spike, and we can trade this directly. Buying a straddle, which involves purchasing both a call and a put option, would profit from a large price swing in either direction. This hedges against the risk of being on the wrong side of either the interest rate story or a major geopolitical escalation. The US dollar’s weakness is the most unusual signal, falling even as our yields rise. This suggests traders are favoring the Swiss Franc and Japanese Yen because the US is now directly involved in the conflict. This is a major shift from what we observed through 2025, where a strong dollar was the primary safe-haven asset. Create your live VT Markets account and start trading now.

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The Volatility Index (VIX), often called the “fear gauge,” is a vital measure of market sentiment pricing in predictions and expectations of future volatility based on S&P 500 index options.

Understanding how the VIX works is essential for retail traders, especially in today’s volatile environment, where market emotions can often dictate price movements more than logic or fundamentals.

Let’s break down how the VIX works, how traders can use it, and why it is more than just a reflection of market movements.

Click here for Quick Trader’s Takeaway!

What is the VIX and why is it important for traders?
The VIX measures expected market volatility, often referred to as the “fear gauge.” It reflects market sentiment and is crucial for anticipating price swings and hedging risk.

Does the VIX always reflect actual market volatility?
No, the VIX measures implied volatility, which is based on market expectations of future volatility. It can lag behind actual market movements in the short term.

Why does the VIX rise during times of uncertainty?
The VIX rises when fear or uncertainty is high in the market, such as during geopolitical events, economic instability, or unexpected market shocks.

Can the VIX help me predict future market trends?
While the VIX can signal increased market uncertainty, it does not predict direction—only the expectation of volatility. Use it as a tool to gauge market sentiment.

What is the correlation between the VIX and major market indices?
The VIX is inversely related to major market indices like the S&P 500. When markets drop sharply, the VIX often rises, reflecting increased fear and uncertainty among investors.

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What is the VIX?

The VIX measures implied volatility, reflecting how uncertain traders are about future market conditions. It’s not just about how much the market moves today but also what market participants expect and project for the next 30 days. The VIX uses S&P 500 index options to calculate this figure, capturing the cost of options relative to the expected market movement. A simple indicator:

• High VIX: Suggests a fearful market, anticipating large swings in prices.
• Low VIX: Implies a stable or complacent market, with little expected movement.

The Recent Volatility Drivers

Volatility has surged since 2026, with VIX topping 30 for the first time since April’s tariffs as global markets face off with another wave of Trump’s tariffs in a political rift.

Moves made by political leaders and within leading industries have directly impacted the VIX, making it an even more important tool for traders in 2026.

1. Geopolitical Conflict & Energy Supply Shocks
   Recent attacks on major energy infrastructure have driven crude oil above $119/bbl and triggered broad market reactions, including drops in major equity indices and higher volatility across stock, rate, and FX markets and historic swings in oil and gas markets linked to the conflict, escalating energy market volatility. Not forgetting broader geopolitical frictions (trade tensions, military interventions, political instability in energy regions), also cited by strategists as top expected drivers of volatility this year.

2. Macro-Economic Policy Uncertainty
   With energy prices rising, central banks warn of persistent inflation risks. This is on top of the financial risk assessment of a probable recession in 2026, as sticky inflation and monetary policy uncertainty create gaps in expectations. Government turbulence and an unsustainable action plan can turn volatility from peg to broad market levels. Asset Management Firm ICG has its eyes on US market as a key risk.

“One of the biggest risks to markets in 2026 is the risk of turbulence in government debt markets that ripples through to other asset classes. The US is a particular risk in our view, given that it has been consistently running fiscal deficits in the 7%–8% of GDP”

3. Market Micro and Cross‑Asset Spillovers
   Higher correlations among equities, bond yields, commodities, and FX imply contagion risk, so shocks in one market segment can rapidly elevate volatility across others.
   e.g. A sudden surge in rates leads to equity risk repricing, which feeds back into credit spreads, then currency volatility, etc. mechanically lifting volatility indices.

4. Structural Tech Shifts & Market Dynamics
   The integration of new technologies such as AI, quantum computing, and autonomous systems in trading and finance continues to introduce bolder moves with no clear support. As legacy software makes way for AI Agentic systems, their volatility risk can send the VIX into upward swings. Year-end financial reports indicate high valuations and rapid earnings to rerate tech and trigger large index swings if earnings disappoint or growth slows, adding another volatility trigger.

The VIX in Relation to Other Market Indicators

The VIX is primarily tied to S&P 500 options, but other indexes and products also react to it. Here’s a quick look at how different derivative trading Indices that VT Markets carries reflect the VIX:

Market/Product	VIX Correlation	Details
S&P 500 (SP500) & S&P 500 Futures (SP500ft)	Directly correlated	The VIX is calculated from S&P 500 options. A rise in S&P 500 volatility leads to a spike in the VIX.
DJ30 (Dow Jones Index) & DJ30 Futures (DJ30ft)	Correlated with the VIX	Significant market swings in the Dow Jones often trigger VIX increases, as it reflects broader market sentiment.
NASDAQ100 (NAS100) & NASDAQ100 Futures (NAS100ft)	Strong correlation	Tech-heavy NASDAQ100 is particularly sensitive to market volatility. Movements in tech stocks can sharply impact the VIX.
EURO50 (EUSTX50) & GER40 (Germany 40)	Moderate correlation	European volatility can drive broader market shifts, which in turn, can influence the VIX. Events like Brexit or ECB policy changes may move both these indices and the VIX.
NIKKEI 225 (Nikkei) & Nikkei Futures (JPN225ft)	Indirectly correlated	The Nikkei tracks the Japanese market, which can influence global sentiment, pushing up volatility as global risk appetite fluctuates.
VXN (NASDAQ-100 Volatility Index)	Directly correlated	The VXN works similarly to the VIX, tracking volatility in the NASDAQ-100. Movements in NASDAQ stocks often lead to similar volatility shifts in both indices.
VXD (Dow Jones Volatility Index)	Directly correlated	Like the VIX, VXD tracks volatility in the Dow Jones. Increased Dow volatility will lead to a corresponding rise in the VXD and the VIX.

These present opportunities for traders because the VIX is not just tied to stock prices but ripple to other market rhythms, even in large price swings in related ETFs.

For example:

• Commodity ETFs (e.g., USO, DBC) can rise in volatile market conditions if there’s a spike in oil prices due to geopolitical risks, while bond ETFs (like AGG) may fall due to rising interest rates.
• Tech ETFs and crypto ETFs like ARKK and BITO can have sharp price swings during risk-on/risk-off environments, where traders seek growth or safe-haven assets based on VIX fluctuations.

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For traders looking to speculate on volatility or hedge against market downturns, VIX products such as VIX Futures, ETFs, and ETNs can provide direct exposure to volatility without needing to trade the broader stock market. Download the VT Markets app to monitor real-time CFD price action on related assets.

How Traders Can Use the VIX in Their Strategies

The VIX is often seen as a barometer of fear, a tool to gauge market sentiment and trade volatility during times of uncertainty. For traders, understanding how to use the VIX is essential, but it’s also important to note that the VIX doesn’t perfectly reflect actual volatility. Here are a few key considerations when incorporating the VIX into your strategy:

Lag in VIX Adjustments
The VIX measures implied volatility, meaning it reflects future expectations rather than past price movements. When the market experiences a significant short-term fluctuation, the VIX may not immediately reflect this volatility.

• Example: Let’s say the market has a sharp move one day, but traders are hopeful the volatility will subside soon. The VIX may not spike immediately but adjusts later once market participants adjust their expectations.

Market Event	VIX Movement	Time to Adjust
Major market crash	VIX rises sharply	Within 1-2 hours
Quiet rally with sentiment shift	VIX remains flat initially	1-2 days later

VIX Reflects Fear, Not Just Movement
Even if the market is moving, without significant fear (e.g., a calm rise in the market), the VIX may not spike. It reacts more to fear and uncertainty than to pure price changes. When the VIX rises, it signals that traders are expecting future volatility, even if current prices aren’t changing drastically.

• Hence, if there’s no clear trend but heightened concern over future risks, such as an earnings season or election, the VIX can rise sharply while the market remains relatively stable.

VIX is A Derivative of Options
The VIX is calculated from the prices of S&P 500 Options, so it depends on options market activity. If there’s low activity or low demand for options, the VIX may not increase as expected, even during volatile periods.

• Keep an eye on options market activity as what is being priced into there for the next 30 days will reflect into VIX.

The Emotional Side of Trading the VIX

VIX spikes are a mirror to market emotions. They reflect the anxiety and fear that investors feel when uncertainty rises. Many traders underestimate how much emotion influences price movements. While logical strategy should be a key part of a trader’s approach, emotions often dictate the actual market action.

When market participants are in panic mode, they act on fear, which amplifies volatility. Understanding this psychological factor is crucial for traders who wish to navigate the emotional storm of the VIX effectively

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You can access a range of volatility-based products, including ETFs, and futures, through our platforms. Get the tools you need to trade with confidence in today’s unpredictable market. Open an account today!

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Silver rebounded from its daily low on Thursday as the US Dollar and Treasury yields pulled back. XAG/USD traded near $71.50, down about 5% after falling to $65.51, its weakest level since February 6. The Fed, BoJ, SNB, BoE, BoC and ECB all left interest rates unchanged. They also noted upside inflation risks linked to higher Oil prices during the US-Israel war with Iran.

Rate Expectations And Silver Demand

Markets are reassessing rate expectations, supporting a higher-for-longer view on borrowing costs. This is weighing on demand for silver, which does not pay interest, even with ongoing geopolitical tensions. On the chart, silver has stayed under downward pressure after peaking near $96.62 earlier this month. Price moved below the 50-day SMA and then fell under the 100-day SMA near $73.40, which is now a pivot level. RSI is around 34, near oversold levels. MACD is below its signal line in negative territory, and ATR has edged higher, pointing to rising volatility. A daily close below the 100-day SMA keeps focus on $64.08, the February 6 low, then $54-$55. If price regains the 100-day SMA, the 50-day SMA may limit gains, with $96.62 and $121.66 as higher levels to watch.

Shift From March 2025 Outlook

Looking back at the analysis from March 2025, the environment for silver was quite negative due to a “higher-for-longer” interest rate narrative. Today, we see a different picture as the market is now pricing in potential Federal Reserve rate cuts later this year, even with recent inflation data like the Consumer Price Index showing a stubborn 3.2% annual rate. This shift in expectation fundamentally alters the landscape for non-yielding assets like silver. The pressure from a strong US Dollar and high Treasury yields, which we saw as a major headwind last year, has softened. The 10-year Treasury yield is currently hovering around 4.3%, down from its peaks, creating a more favorable backdrop for silver prices. As a result, we are no longer testing lows but are instead consolidating around the $25.00 per ounce mark. For traders expecting volatility to pick up ahead of the next Fed meeting, buying protective puts could be a prudent strategy to hedge long futures positions. For instance, purchasing puts with a strike price below the key support level of $24.00 would offer a safety net against any unexpected hawkish signals. This allows for continued upside exposure while defining the downside risk. Conversely, those who believe the path is clearer for rate cuts can consider bullish strategies with defined risk. A bull call spread would allow traders to profit from a moderate rise in silver prices toward the next resistance level near $26.50, without the unlimited risk of a naked long call. Selling cash-secured puts below the current price is another way to express a bullish view, with the goal of either collecting the premium or acquiring silver at a lower cost basis. We’ve also observed a significant shift in market positioning compared to last year’s bearish sentiment. The latest Commitment of Traders report shows that managed money funds have increased their net long positions in silver futures. This indicates growing institutional belief that the price floor is in and the path of least resistance is now to the upside. From a technical standpoint, silver is holding above its 50-day moving average, a stark contrast to the breakdown we were analyzing in March 2025. We are now watching the $25.50 level as a near-term pivot point, with a sustained break above it potentially triggering a move toward the 2023 highs. The key is to watch if buying volume increases on these upward movements, which would confirm the bullish momentum. Create your live VT Markets account and start trading now.

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