VIX Surveillance Cam Activated
While I was busy rubbing mud in the faces of my critics (not really – but perish the thought) a small red alert signal started to blink on my evil lair’s market domination console. No, it wasn’t some incoming intercontinental missile launched by the legion of perma-bears I just humiliated (you know who you are), rather it was my VIX border crossing surveillance cam. Yes, that’s right – when it comes to market volatility the evil lair’s alert systems are finely tuned and ready to mow down border crossers at the slightest infraction. (Herman Cain: call me!)
Well today’s message to all stainless steel rats: Let’s not get complacent. We had a sweet ride fading the perma bears but let’s remember that you’re only as good as your last trade. That VIX is dangerously close to crossing that lower Bollinger and although the longs may be smart enough to keep it just above we definitely want to keep an eye on this sucker.
But there’s another sword of damocles hanging over the longs right now – please step into my tackily furnished 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.
As you know I don’t read the news so I have no idea what allegedly caused this spike up – neither do I care. But technically that was one fast move through some very difficult volume deprived volume turf. Word has it the bears are doubling down (see my twitter response if want to know more) and if I was a market maker I would be very tempted to reinforce that hope and lure in a few more shorts up here..
Anyway, as you can see there is another less pronounced volume hole looming above. It’s not as thin as the last one but it’s there and if there will be any shake out this late in the season then this is as good a place as any. So, if you have been famously long since the bottom then I recommend you take at least partial profits and pour yourself an expensive alcoholic beverage. Have one on me and then another one on the Zero 😉