Forgive me FAZ….
… I almost got the StockTwits award for that call. It’s all g. Off to the intraday charts:
Well, I got my VIX < 51 rally spot, and I went long FAS for a daytrade. We still have one more hour to go on the tape. I expect the bulls to hold this one, so hopefully we don’t get a reverse-WTF pattern into the close, or more appropriately a ɟʇʍ-pattern. For now, FAZ is getting nuked, and deservedly so. Down about -27%.
Once again, when there is fear or panic in the market, I would switch to using the VIX over technicals. The hard part about technicals is that when you have a free-falling stock/market, its tough to call a bottom. However, when it comes to fear, people generally get tired of it, and panic is an ephemeral emotion. So, instead of trying to spot a possible rally by guessing the bottom in an index, I used a reversal in fear. VIX under 51 is the spot!
Brian from AlphaTrends gave me a shout out today on Twitter. Right back at yah! For technical analysis from a proven vet, check him out http://www.alphatrends.blogspot.com/
Enjoy the rally.
-gio-
… if you think this video is nice, imagine watching 4 beautiful girls dancing hula to this.
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So per say i am already long since the open, what on the VIX is a good idea to reverse?
Nice Vix analysis here and on Twitter Gio!
Reverse back up? pull out a 5-week chart of VIX. notice it is stuck in a channel. the closer the VIX gets to the bottom of the channel, the more likely it is to reverse, hence, good spot to exit longs. Never forget the overall trend… it is down, so until proven otherwise, we are trading tradeable bounces/ relief-rallies.
-gio-
the VIXpert!
nice G
GIO,
I tried to ask you on stocktwits, but i don’t know if you have it filtered or missed it, but what broker to you clear through? I clear through Goldman, but I can never get any of the triple etfs short. Thanks
That muzak is gai.
Ahhhhh……. These Islands…. ahhhhhhhhhhhhhh………. so goooood.
@crgmdy … sorry i missed your post, i think i was making this post. I’ve been getting the same report from other traders that their brokers no longer have shares to short. I use Scott and none there either. There are options, as well as FAS.
@Don’s HO … go back to your tiny bubbles.
Gio,
Thanks. It was earlier during today’s trade, so I’m sure you were busy with something else.
bummer i missed the sell at >80 today and yesterday… today would have been a nice day to reload on FAZ. Obama may spin positive, but he usually does mince the truth of what is going on.
i will have to log on to twitter more often.
Nice call, sweet VIX.
Hi ya Gio–
I have one NAUD scenario where the VIX goes into hyper whipsaw–up 10%, then down 10%, then up 10%, then down 10%—check it out–
http://zstock7.com/?p=676