Stretch Armstrong Tuesday Rub Down
So, let me get this right – NDX, DJI, SPX, and RUT all closed down for the day and we see a 3 1/4% drop on the VIX at the same time? You know what – speak to the hand because the face ain’t listening!
Anyway, let’s get to the Zero:
Yeah, I think you guessed it – complete flat line, which accounts for much of the monkey business. Of course this doesn’t mean we can’t bust higher – but it could also precede a drop. Usually a flatline like this tells me is to stay the heck out and to not touch the tape.
The good news – this year is almost over – I frankly don’t expect much in terms of deterministic moves before early January, everyone is going to start leaving for the holidays in the next two weeks which probably means either higher tape or sideways action. The dream of some catastrophic drop is quite far fetched for the current trading cycle – sorry Hochberg & Prechter 😉
Program Trading Update:
geronimo/ES: +2.5 – back to working like clockwork – love it.