As a follow up to Monday's post on Volatility Peaks here are 4 additional studies of STOP Volatility that illustrate why SPY is an excellent target for high odds success while other sectors do not demonstrate the same linearity.
First, XIV.... the VIX inverse ETN...which hypothetically should offer great correlation odds if our peaks are based on volatility. Not so, it turns out and I've mentioned many times before how SPY volatility does not necessarily correspond with VIX volatility. This study shows that volatility itself does not correlate highly with XIV price and in fact displays a distinct lag..
The volatility peaks just don't work reliably for XLE.