VIX Buy Signal
VIX Buy Signal
After a week long sell off I find it rather humorous that we should end it via a VIX Buy Signal. But there it is staring us in the face – unless something rather catastrophic happens we’ll fulfill the third requirement at today’s close:
If you are new here and are curious about the rules look no further than our handy cheat sheet. I think the odds are rather high that we’ll close below yesterday. Once the third requirement is in place odds are high that we are going to see a reversal within the next week. I conceded that this is a rather loose definition – if it makes you feel any better, in the past few years a VIX Buy signal usually was observed within three days.
The spoos have pushed above that falling diagonal resistance line and that’s positive. However we’re not out of the woods just yet as the 25-hour SMA is offering resistance now. Further we have a NLBL at 1645.75 and that’ll have to be conquered. Until this happens I think 1645.75 makes for a great shorting opportunity. Long above it of course – let’s not forget that we have a VIX Buy signal in place.
Update on natgas – you may recall that double inside period I was pimping here on Wednesday. Guess what it’s time to take profits as it has descended to its 100-day SMA. That was a quick ride!
Two setups before we’ll call it a (very profitable) week – please step into my trading lair:
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Enjoy your weekend!
Cheers,