iBankCoin
Joined Jul 30, 2008
2,107 Blog Posts

Barcelona Wins Champions League; VIX < 30 = Short; Obama Gives Alternative Energy a Boost

Where are our international readers at?  Right now I’m wearing my old Batistuta jersey I got from an Italian friend who swapped jerseys with me in an indoor match I played in Italy a few years ago.  It’s a pretty nasty ritual they do, but whatever, that’s their custom.  It’s washed, I promise.

If you live outside of the United States, then I’m sure you saw the game.  Great game!  If you live in the US, then you probably were watching the Laker game… great game too.  Sorry Manchester, I honestly thought Ronaldo should have scored at least 3 goals in the first 5 minutes of the game.  Total team came up with nil.  If Manu won, then Ronaldo is #1, but Messi claims title as best in the world and he showed it yesterday.  Little guy got skills.  FC Barcelona has been my favorite football club for a while, and I’m glad they knocked off Manchester United.  Finally.  Next up… Lakers!

Anyway back to stocks… before all these games aired, Obama was busy shaking his alternative-energy pom-poms.  I mean, I sat there watching this guy put lipstick all over this sector, while the underlying stocks were being bid up fast!  Now we know why some of those energy plays were in play yesterday.  YGE extended its near 20% gain with another 10% move. 

As for the rest of the market… well, I’ll say it again, VIX in the 20s is making it very difficult for stocks to extend its rally.  I’ve wrote that in Sunday’s report, so I hope you caught that.  I’ve been fading this tape, or keeping a careful eye on the tape whenever the VIX gets under 30.  So far this has worked quite well.  I’m not sure how much longer this will work, but I can see the VIX is trying to change direction.  Still waiting for that slow downward trend to be broken. 

Let’s continue to use that VIX < 30.  Look at these two charts, can you guess where I began fading and beefing up shorts on this intraday tape?

Chart for CBOE VOLATILITY INDEX (^VIX)

Chart for S&P 500 INDEX,RTH (^GSPC)

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11 comments

  1. Ass Napkin Mike
    Ass Napkin Mike

    the word “football” shall never be used to talk about such a sissy sport, here in America.

    got it, pal?

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  2. Gio

    There you are Mike! Was wondering where you went. How’s the city of Boston these days?

    … I’ll leave it at that.

    Anyway, there’s nothing sissy about football. It’s the only sport I played where I actually threw up during the game. Football, (oh sorry, I mean soccer) is boring to watch, I admit, but if you’re not fit, stay off the field.

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  3. Cuervos Laugh

    Gio – you should be in Toronto during World Cup.It gets kinda nuts.

    My wife and I were hunting for a church for our wedding back in 2007 and were stuck in Little Portugal (Toronto) after a Team Portugal win. Traffic didn’t move for about 45 minutes and I was glad I wasn’t in one of the pubs.

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  4. Treepart

    Soccer should be outlawed in this country since it’s clearly a dangerous sport.

    When the star pitcher on my son’s little league team I coach, for whatever reason (maybe because he’s 9), decides to;

    1) Stand on a soccer ball
    2) And the ball goes out from under him.
    3) He falls and breaks his elbow………..

    It’s time to ban soccer.

    My pitching is now mediocre at best. The rest of my pitchers pitch like soccer players.

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  5. DPeezy

    Of course Barcelona should’ve never been here (see my posts in the KoPG), but despite that I’m glad that they’ve pulled through as “underdogs” and smacked down the hated ManUre. I’m not so sure I could’ve handled United winning it again.

    And nothing gives me more pleasure than to see Ronaldo’s pouty-face. I’ll be happy to see him leave for Real Madrid this summer – the Premiership will be a better place without him.

    Messi is fun to watch, although he also suffers from the diving bug. Iniesta was the rock in the midfield while Puyol was arguably the MVP of the game.

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  6. C Ronaldo

    fuck you eto’o. fuck you messi.

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  7. Gio

    Hey Dpeezy… okay, I agree with you on that one. Messi has been more consistent though. but yeah, it was great seeing Ronaldo blow a few easy shots.

    Treepart… soccer is a religion overseas. i went to a simple soccer game in Vicenza, and they were burning flares in the crowd.

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  8. BackAndFill

    Gio,

    you live in paradise! I just got back from 2 weeks on the north shore of Kauai (house on Tunnels Beach) and am feeling much more in tune with what’s important in life.

    Ready to trade this bitch of a market!

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  9. stewie

    CIAO GIO!! Come estai??

    VIVA BARCA!!!!!!!

    VIVA MESSI! 19 year old footballing prodigy.

    http://www.youtube.com/watch?v=Qmq4Uv7iV3w&feature=related

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  10. Gio

    Ciao Stewie! Molto bene mio fratello. You still playing? How’s the married life going? Tell your wife I said hi!

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  11. stewie

    ciao gio.

    we are engaged, not quite married yet. maybe next year sometime. I am in no rush, lol! She is sitting right here and she read your nice message.

    cheers pal!

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