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Easy Rider
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Easy Rider

Easy Rider

by The MoleMay 25, 2017

The best thing I ever did as a trader was to completely ignore the news and simply focus on my technical analysis and system rules instead. A policy that not only has kept me out of a laundry list of bear traps over the years but also allowed me to take advantage of entry opportunities while the majority of participants were left rubbing their backside.

2017-05-25_VIX

Once again the S&P has painted all time highs and not surprisingly this has pushed the VIX back into single digit territory. Now if you read ZeroEdge and various other watering holes frequented by chronic permabears then you are probably convinced that we are heading straight into another cyclical market crash. Well, not so fast – the data suggests otherwise. A quick glance at the VIX chart above clearly shows us that single digits indeed do precede bear markets – by several months at least.

2017-05-25_VIX_easy_ride

Besides as of right now we are officially in ‘easy rider’ mode. Unfortunately I was on vacation last week or I would have posted this chart right away. The good news is that we’re not done yet and that the fast and merciless first leg higher should continue until the ROC drops below the -35 mark.

More momo charts below the fold for my intrepid subs:

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About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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