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Could It Be?

Could It Be?

by The MoleApril 12, 2010

We have been waiting for this moment for almost three months now. Could it be today is the day?

Let’s hope we are getting a close outside the 2.0 Bollinger on the VIX. For you noobs – let’s review the VIX buy/sell signal rules again as it has been a while since I posted them:

For a $VIX confirmed signal you need 3 things:

  1. a close outside of the 2.0 Bollinger Band (20 day, SMA
  2. a close back inside the 2.0 Bollinger Band – this issues the signal
  3. a higher close (sell) or lower close (buy) than the close of the day back inside the 2.0 Bollinger Band – this confirms the signal.

Once you get those 3 things a major reversal usually occurs within the next week. The sell signals are far more accurate than the buy signals.

As for downside targets on the SPX I would eye 1150 – after that I’d be out. However, based on my SPX P&F chart the following targets are possible:

As I said – there’s 1150, then there’s 1110, and if things get really fun we could see 1060. However, that’s where I would see a floor, which would most likely be followed by a rapid rebound.

But whatever you do – close your long positions right now – if you haven’t done so already.

Last warning – the writing is on the wall. Remember: Bulls make money, bears make money (not lately – hehehe), and pigs get slaughtered 😉

UPDATE @ the closing bell: Wooohoooo!!! Strike 1:

Looks like the bulls may be tripping over their own greed soon. Well – we need one close higher and one on the inside now. But this is a good start.

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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