It’s just kind of hard to believe that Wall St. would give up all the goodies just above right now”
For us though there are two different forms of VIX information, the price itself which is all most people see and the underlying trade (Our 3C indicator) which is in my opinion, a far better indication.
As far as I can see, the VIX is confirming both expectations, the strategic and tactical.”
Hedge Strategy / Market Trade Duration & Probability Analysis
Whether and actual hedging strategy is incorporated or not is a personal choice, if there’s a good set up for it, I’ll likely try it with a few assets with the ideal outcome being short term long trades using leverage hedge long term trending shorts which will not only hedge the long term trade, but should raise gains via the short term leveraged traded functioning not only as a hedge, but as a trade in itself and protecting a higher, long term probability position.
These all look good for at least a leveraged long position and they may in fact be position for a much wider move.
Here are some examples: FAS (3x long Financials- I already have a trading position opened here).XLK or the Tech sector, TECL is a 3x leveraged long ETF for TECH. AMZN looks interesting. Goldman (GS) looks like it has a good bounce in it. URRE on a longer term is looking really strong on this 30 min chart, I don’t want any kind of leverage , just URRE long. *URRE was up +20% the next morning. The SPY 5 min is now seeing positives, so positions like UPRO (3x leveraged long SPY) might be an option if you prefer to stay away from options.
HERE’S WHAT THEY TOLD US ABOUT TODAY…
Of 500, 372 SPX component stocks finished the day with a relationship of price down and volume up, THIS IS USEFUL BECAUSE IT IS DOMINANT AS ARE THE OTHER AVERAGES.
25 OF THE 30 DOW-30 FINISHED @ PRICE DOWN/VOLUME UP.
And 96% of the NASDAQ 00 finished lower on higher volume.
Of the 4 possible relationships, today’s dominant relationship was a lower close on increasing volume which is actually the second most bullish of the 4 relationships as it represents short term capitulation or a selling / exhaustion event.”
Here we can clearly see what I was talking about as far as a “larger footprint” in the reversal process.
Almost every asset I looked at had this same intraday behavior including the market averages.
We can even look at the VIX futures and get the same feel…