Market is up about 2.5% after Fed announcement, while VIX only down -5%. I would bet against the crowd if the VIX were down -10%, but it seems like it is stabilizing around 36 heading into the close so rally should give up gains. VIX was as low as 35.37 today, so I will use that as my short entry point: 34.50 – 35.37. Other than that, it feels like the rally is running low on fuel probably because we’ve been stuck in a neutral zone for the past week. I’m slowly building a short bias into this uncertainty.
Then again, I like shorting into news rallies, so I’ll go ahead and bet against oil as we move into driving season. Shorted PDE after a light volume break above down trending 200 MA. I will short the other half below it.
Leaders down on today’s Fed spike: NFLX, GMCR
Oh wait a minute, market reversing into the close here. Moves fast.
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It’s only a matter of time.
EEFT reported today. Gonna read the transcripts tonight.
@alpha… yeah, i didn’t want to say it, but buying into today’s rally is foolish.
Ahh, so true Gio. Glad to see a VIX analysis amid a lot of traders still thinking momentum has this market. The tides are going to turn, and like alphadawgg said:
“It’s only a matter of time.”
Player, take a look at your old favorite lately…MELI? It’s had a nice steady uptrend. I’m putting it back on the radar.
Green Mnt. is killin’ it again. That Co. is on fire. GIO, do you see a possible short set-up if the market reversed hard?
I am completely with you Gio! Not only have we hit major resistance levels on the SP500 and are in overbought territory but i just think this rally has lot legs considering we’ve been stuck at neutral for a week and the market doesn’t have much to go on. Realistically, the economy hasn’t changed much only its still getting worse; banks are producing bogus profits because of a change in the accounting rules, the dollar is getting hammered and confidence is starting to leak out via profit taking. We’re startking to stall here, I like skf here for a big swing.