In Case You’re Wondering

Yes, the site was down for a mind boggling ninety minutes this morning. Unfortunately I had one of my ‘bad nights’ and after popping some melatonin at 4:00am PDT I was still in slumber land while you guys were trying to kick in my gate to tar and feather me and then ride me out of town on a rail. Sorry about that – I have let the hosting company know that this is absolutely unacceptable, especially during trading hours.

And yes, in case you were wondering, we do have a bonafide VIX buy signal. Well…. kind of. See, on my chart I do have the upper boundary at 41.62 and VIX closing at 41.25 – thus officially it’s below and according to the rules the first candle needs to close outside of the Bollinger. But I’m sure others will have slightly different values based on configuration or the way their standard deviation and SMA is calculated. And even if all of them are identical to mine then I would still think that this is rather academic in that we already saw a 9% drop in implied volatility today – thus the VIX buy is already in process. Quite a whopper and trust me, those caught short are really feeling it today – ouch! Then again, it’s their own fault for not signing up for the Zero, isn’t it? 😉

Now, can we expect lower VIX and higher prices in equities going forward? I have some ideas on that – please step into my office:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Well, we are still in the Goldilocks zone and although I see the tape dropping right now (took me a while to get the site working since I took these screen grabs) the longs should have smooth crusing into 1203. There looms our current NLBL and that one needs to be overcome – but I do expect some resistance and a little reversal there.

The net-line buy level is one thing – volume profile is another. The 1200 – 1220 cluster has been virtually impenetrable to the longs and needs to be overcome. You may recall that 1250 is the inflection point at which I would feel more comfortable holding long positions for more than a day or two (and possibly over a weekend).

That’s all I have today, folks. Again, apologies for the outage this morning and the late post. I have been working with my hosting company all morning and it literally sucks the energy out of me. So I’m going to step outside now and kick a tree for while.

Cheers,