Last night was one of those no-brainer calls. The market telegraphed today's 151 point plunge from a mile away. And you know what? It's not done yet. All of the factors that were in play last night are still there: oversold indicators that have (finally) peaked, a hanging man confirmed by a long red candle, lower futures, renewed rumblings out of Europe about Greece, or now it's Italy, heck it's Greetaly, mama mia, rhe whole deal.
And the VIX, which I did not mention last night, has come alive, with a big gap up green candle to close at 18.39, bumping right up against its 200 day MA. That puts it right in the middle of its Bollinger bands and with its indicators all still just coming off highly oversold levels, it's still got plenty of room to run. Higher VIX, lower stocks.
I don't know where this one is stopping but I'm pretty sure the market tomorrow is going lower again. I took out some SDS again today to hedge my long positions.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment
Due to some people who just won't honor my request not to post spam on my blog, I have had to re-enable comment moderation. Comments may take up to 24 hour to appear, depending on when they're made. Sorry about that.