Today was not a really good day to day trade, but I did make one trade. It sort of illustrates how to use a breaking down VIX to find an entry for “stupid longs”.
Above is the trade I made, using “Vix breakdown below 43.20” for entry on FAS just under 9. And here’s the thought process documented on StockTwits…
Despite a choppy tape, made the call on FAS. It was bold and stupid, but it made it. Lol.
Day high on FAS was 9.55, which occurred in final 30 minutes of trading. Was expecting a better breakout. Oh well.
One final note: the VIX is approaching a key support area using a 15-day chart. I used today’s rally to exit some swing longs and enter new shorts. I’m not the only one who spotted last week’s funky Vix reversal. Someone tipped me off to EvilSpeculator’s post on the Vix yesterday, which uses Bollinger bands and other fancy stuff.If you enjoy the content at iBankCoin, please follow us on Twitter