If I could have a penny for every setup I felt enthusiastic about and that invariably blew up in my face I would be… well, a lot richer than I am. To be honest when it comes to picking juicy entries off a chart I rank about average. What may set me apart from the rest, and what has helped me survive in a wide range of market conditions over the years was learning to overcome my instincts and engage in setups that scared the heck out of me.
It’s EOY rally season and apparently everyone has been at their best behavior this year as Santa already has delivered in spades. At this point however what I care more about is what lies ahead for us, and given a technical vacuum at all time highs it may be worthwhile to take a look at implied volatility for clues.
I have been posting here on Evil Speculator for over 11 years now but this is the first time I recall a VIX Buy Signal following a Sell Signal in such short succession. Can it be trusted? Did I miss the pre-Santa-Rally dip? Is it too late to load up on long positions? So many nagging questions but as usual the Market Mole’s got you covered:
Most retail rats launch their trading endeavors (calling it a ‘career’ would be a vast exaggeration) by voluntarily checking themselves into a financial industry indoctrination camp where they are force fed a corrosive diet of nonsense such as magic candle patterns, Elliott Wave theory, moon phases, solar cycles, Bradley Turn Dates, Hindenburg Omens, etc.