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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.

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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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