Trade: EGO

New longs:  EGO (7)

Get in gold.

New longs:  FSYS (46.48)

GS bouncing off 100?  Hmmm.

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]]

What stock is that?

Is the “Easy” money there done?

Doesn’t it feel good to see green?

BTW, the $Vix morning spike was the second Vix spike in a row giving you all a GREAT OPPORTUNITY to go long for a day trade.  But did you notice how quickly those panic-rallies can last?  Enjoy the panic…

My Vix theory stands.  Aloha!