This week is normally bullish, so we could be done on the downside? Not sure yet of course but I’m looking for the VIX to fill the gap down at 12.40 from last week (from today of course too). That’s the BIG setup short I’m looking for to happen. Today there wasn’t a good short setup as they gaped it down and didn’t let us bears in until it bottomed. Typical manipulation. If there would have been a backtest as I suggested in the chart I would have shorted for a day trade, but my big setup isn’t until after that VIX gap fills.
Or we could be involved in Theory #1 ….We shall see in this weeks action.
A couple theories from Richard Russell…….
I have only two theories; first, the market will decline in a jagged
see-saw pattern, a pattern that creates no fear. The market drops ten
percent and analysts declare that this is the long awaited and long
expected ten percent correction.
But the general market continues to
decline, and investors remain in the market waiting for the inevitable
rally that will conclude the correction. No rally comes, and stocks
continue to decline, suddenly there is a realization that this is no
correction but a bear market, and down goes the bear, taking billion of
shares with him.
The other scenario that I envision is
one day, with no previous warning, the market drops and a huge gap, over
a thousand points in the Dow opens. The authorities close the exchange
for three days and when the market opens, it gaps down again. When the
market finally opens again, thousands of stocks open well below their
previous closes and a bear market is on.
SPY Update: http://screencast.com/t/l0wjHwAWC
ES Futures update: http://screencast.com/t/pu2jXUSkwUX
I use to pay for their service till they moved it from$49.95 to $99.95 per month….But they are good for Swing trading!
SPY Update: http://screencast.com/t/b2nlqHRDo4q
Good Video https://www.youtube.com/watch?v=8pWQRCfan14 My thoughts are that we do indeed breakout to the upside and top out this Thursday or Friday in the 2120-2130 area.
Once again…VIX and markets are positive. BEWARE.
This week is normally bullish, so we could be done on the downside? Not sure yet of course but I’m looking for the VIX to fill the gap down at 12.40 from last week (from today of course too). That’s the BIG setup short I’m looking for to happen. Today there wasn’t a good short setup as they gaped it down and didn’t let us bears in until it bottomed. Typical manipulation. If there would have been a backtest as I suggested in the chart I would have shorted for a day trade, but my big setup isn’t until after that VIX gap fills.
Setup looks changed now: http://screencast.com/t/hgnWNxTAHp
Very tricky right now. This quick move up is hard too figure out.
Or we could be involved in Theory #1 ….We shall see in this weeks action.
A couple theories from Richard Russell…….
I have only two theories; first, the market will decline in a jagged
see-saw pattern, a pattern that creates no fear. The market drops ten
percent and analysts declare that this is the long awaited and long
expected ten percent correction.
But the general market continues to
decline, and investors remain in the market waiting for the inevitable
rally that will conclude the correction. No rally comes, and stocks
continue to decline, suddenly there is a realization that this is no
correction but a bear market, and down goes the bear, taking billion of
shares with him.
The other scenario that I envision is
one day, with no previous warning, the market drops and a huge gap, over
a thousand points in the Dow opens. The authorities close the exchange
for three days and when the market opens, it gaps down again. When the
market finally opens again, thousands of stocks open well below their
previous closes and a bear market is on.