Morning traders… the Vix spiked yet again, but failed to take out the famous 35 resistance point. That marks a staggering 89% jump in about 2 months! It probably will get past that point soon. If you ignore all the news, then its probably a good time to cover shorts, or buy some stocks when the Vix approaches 40… like I’ve been saying all year long. I’m not saying you should buy now, but this is could all be part of a classic bottoming process. Remember, it takes about 4-6 months for a trend to turn, so you may need to wait for 2009. Sorry bulls. Panic does not disappear in a day. Anyway, there are plenty opportunities to catch a relief rally, so continue to play by the rules:
1) day trade on short squeeze
2) add to swing shorts on every spike (like yesterday). Remember, what the market hopefuls will give you will be faded by the end of that week.
Finally, start doing some REAL LIFE hedging and buy gold. There is some fundamental damage going on to the U.S. dollar and money system. Accumulate gold and other precious commodities.
Goldcorp Inc. (USA) [[gg]]
[[gld]]
Yamana Gold Inc. (USA) [[auy]]
Eldorado Gold Corporation (USA) [[ego]]
If you enjoy the content at iBankCoin, please follow us on Twitter
Vix solidly above 35 right now.
Vix spiked above 35, now at 35.50… time to get long for a daytrade
VIX could get to 60 like 1987
not that I’d bet on that , but you just never know
what do you think of going long HANS if theres a squeeze ? me thinks it could happen tomorrow
HANS looks good. anything not down 2% today is “strong”. Anything not down 3% this week, is very strong.
Throw the vix indicator out. Like Danny said, when morons from Fast Money start using it, it’s worthless.
Plus, with such exogenous events, I bet we get vix to 50.
FCX looks good here, with gold punching higher.
Fastmoney discovered the Vix? damn. Still, Vix works best at extremes from my experience. But i never factored in when the dumb money starts using the Vix.
Dow should gain back 100+ points in the final hour. Lets see if we get that. right now, Dow -355
Currently my 3 min S&P chart is overbought. I think close at the lows. every rally is getting sold.
re the VIX, sadly, it’s true, they talk about it on fast money. At the min, 40 is the new 30.
YES comment editing is back on.
If we close above 1278, that would be encouraging on the bullside, that’s my marker.
Well, so far my Vix theory worked today. Right when it spiked to 35.50, the market reversed about 100 points on the Dow.
GS too hit a bottom at Vix 35.50… so far its bouncing.
The VIX is still a valid indicator, just the VIX 30 trade may be too well known now to work.
Market still rallying…
Market rallied almost 150 since Vix 35.50. Time to sell your day trade longs.
thanks for your comments on HANS!
Vix 40 is still my bottom Danny, but I never use one number for the Vix. Always use a range. For me, its Vix 40-45 = tradable bottom. A spike above that would signal a very good entry point for longs or to start covering shorts. Vix is a waaaaaaaaaaay better indicator than news.
YUP… VIX 35.50 was the bottom. Lol. Market now recovered about 200 points since then in very fast fashion. This is why you buy the panic.
yeah I was wrong about the overbought just there.
oh for sure–it measures to news, so to speak
I got out of my shorts when we stayed above 1278
Thanks for the signals. Used them to catch a ride on the petrol stocks. Do think they will fade into the close?
I would hold petrol stocks here. at least average back in them. if you are already fully positioned, then i would sell back 1/3.
Danny… you have been more right than ever! its ok to be wrong a little… tells me you’re human. 😉
Thanks Gio. Always appreciate your insights.
thx GIO. i in fact bought some AUY. dumped most of VISN…