What’s Good For the Goose…
What’s Good For the Goose…
You guys all know the old saying: What’s good for the goose is good for the gander.
Sorry bears – a red lamp just started flashing deep down in my evil lair:
Well, there you have your gander. We closed outside the 2.0 BB on Mr. VIX today – which as you all know is a first step toward an equities buy signal. We now need another close back inside, followed by a close lower the following day. Sorry guys – I don’t make these rules – they are established over time via empirical observation. And breaches like these often lead to a reversal within about a one week time frame. We all love those sell signals – thus we need to respect the buy signals as well.
See that is the problem with a compressed Bollinger band – you start getting signals all over the place until the new trend finally establishes itself via a big move outside. These gentle little pushes however most likely only serve as fodder for the dip buyers. What would have been best for the shorts would have been what the bulls have enjoyed for months now – a gentle steering into the opposite direction without causing extreme signals outside the band.
Caveat ursi.
Cheers,
Mole
