Range bound?

Today looked sortah bullish with tech and solars rallying. Options expire this week so that explains a lot.

When the VIX spiked to almost 30, I went long solars. Yeee ha! But I ended up covering Financials, when I should have covered tech instead.

Using the VIX, I don’t think we rally strong until we get to 35-40. And I don’t think we fall hard (“the next shoe drop”) until we get to 20-23. Right now the VIX is at 27.50. I think we’ll get more of this swinging action for the rest of the week, so don’t go switching sides too much.

Financials continue to slip, while solars are staging another bounce. Still, the trend DOWN for both.

For the rest of this week it doesn’t make sense to be a hardcore bear or bull, so limit your trades. I’ll be covering more shorts tomorrow and selling more longs. For now, its probably better to play the trend of the inverse ETFs… which means you short or buy them depending on the broader market.

Congrats to my JASO longs!