Tag Archives for " VIX "

VIX Exploded This Week Under Extreme Compression, How Much Higher?

The CBOE Volalitiy Index, VIX exploded this week, up 55% from the close last Friday.  It closed the week at 15.51 after hitting a high of 17.28 on Friday. It has been coiling tighter and tighter for the last 18 months.  In fact this coiling process occurred throughout the entire 5th Intermediate Wave up in the market that started in February 2016.

Explosion

The explosion this week actually began on Tuesday as the VIX broke higher out of a beautiful bull flag that I was monitoring for my Insider Members. On Tuesday the VIX closed at 10.96.  It is also interesting to note the reversal candle that occurred on July 27 which started this entire move. See chart below. Continue reading

If You Think You’re Beat…Get Out

Poker or gambling in general has very interesting correlations to trading. In both you are dealing with uncertainty, the ability to handle your emotions and how well you manage your money.  

And doing all of those things gets back to discipline and your ego. Let’s start off with knowing when to fold ’em as they say in poker or as they say in trading…cutting your losses.  Some good basic rules of poker apply to trading.

Know When to Fold ’em

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No Santa Claus Rally Again This Year

The Santa Claus Rally in the stock market has typically been defined as a rally that occurs between Christmas and New Year’s Day.  Well that didn’t happen this year or last year or the year before.  

In December 2014 the S&P 500 (SPX) was down 1.1% then chopped up and down in January ending the month down 3.1%.

In December 2015 the SPX was down .84% then got whacked pretty good in January ending down 5.1%.  (at one point it was down 11.3%) Continue reading

Hearing a Stock Market Lullaby?

The VIX is in the cellar again. No fear. The stock market has been chopping sideways over the last six weeks.  This kind of stock market lullaby can be dangerous.

In today’s brief market video I look at the NYSE Composite Index (NYA) on a daily and weekly basis, check a couple of indicators and 3 key ETFs. 

I also look at the Baltic Dry Index for the first time in quite a while. Here we go again? Continue reading