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Scary VIX chart

Scary VIX chart

by The MoleMarch 29, 2010

Despite the chart I posted last night it seems that the bears are simply unable to make a stand, which confirms to me that the SPX is in an extending third wave. What’s really scary (for the bears) however is a glance at the latest VIX chart:

As you can see the 2.0 BB has made a complete u-turn and has been dropping sharply. Let’s just project ourselves forward mentally a few days. What would happen if we actually get a down day or two and the VIX would rise up a bit more, eventually pushing outside the upper band?

That’s right – that would mean an equities buy signal – hard to believe but that situation might be only a few days away. Which is the reason I am strictly delta neutral currently – this is not a time to get seduced to either the down or upside.

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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