Almost Trading For A Living
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Yesterday, the VIX ended the day about 9% below the 10dma.
Why should we care about that piece of information? We care because there is
DATA that tells us that when the VIX is extended below (or above) it’s short
term moving averages–it reverts back to it’s mean more than 1/2 of the time.
When it does revert, meaning go up in this case, the market usually goes down.
It becomes like a rubber band, the more it is stretched, the more it wants to
“snap†back. But, the point of this a…
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