Overbought Conditions Remain
As we have seen a few times a year since 2009, overbought markets in bull markets can stay that way for extended periods of time and that is what is occurring now.
Panic buying (money on the sidelines that had to get invested) occurred on Thursday and again in the last 15 minutes of trading on Friday. On all accounts the market is due for a pullback.
Making You a Better Trader:
To improve, you must continuously learn…
Russell Rhoads is one of my favorite analysts when it comes to trading the VIX and other volatility products. Here’ is an article that he wrote which was republished this weekend. There’s very good baseline information on VXX here. I found Number 4 to be especially interesting: