Again, I would rather play the extremes on this market. That means if the Vix gets back to the mid-40s, then I would feel more comfortable shorting stocks. Today’s action on the tape, is so far bullish. Started gapped up, sold off from profit-taking, then bounced back a little, even though we’re down -170 on the Dow. I would notch the day as bullish if we manage to close above yesterday’s candle-stick at the close, which would be 9,271 on the Dow.
This isn’t telling me to go out on a shopping spree and buy stocks, but it at least tells me to continue to not fight a relief rally.
We’re heading into earnings season, but be careful bears… what bad news can companies report to us that we don’t already know? Again, earnings move on surprises.
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what the? we just rallied. LoL. We were down -170 when i wrote that.
GOOG must be bought here, IMO.
sure, why not. my strategy is whatever you buy today, set your stop to the day’s lows.
now lets watch HK fall at the close!
Vix trading flat right now, no matter how volatile the tape is. Vix at 55.72 +1.33%
Vix heading into the red. Market is calming down a little.
It ain’t the earnings I’m worried about. It’s the guidance, or the lack thereof, that will likely cast a negative spell on the market.
Hey Gio. Do you have any thoughts on the massive VIX move today?
Edoss.. yes, I do! We are in a “no trade zone”. Wait for the second spike on the Vix before getting long. Otherwise, stick to the orginal plan and wait for the Vix to get back to an “extreme” high 40… maybe low 50s now. If you’re short, stay short and cover at the next Vix spike.
-gio
Thanks, Gio. You have a good bead on the VIX. Did you like the action today?
Imagine if you went short yesterday!