This Is One Way To Use The Market Volatility Index In Your Trading
Intel’s fourth quarter earnings
exceeded the consensus by 2 cents. Unlike yesterday’s Advanced
Micro Devices’ bad news, market participants welcomed Intel’s reports.
SMH (Semiconductor HOLDRs) gapped up at the open.
11:05:22 (From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
Initial Target |
Current Price |
Posted By |
|
Buy |
SMH |
Buy at the market |
30.84 |
31.30 |
30.97 |
TK |
As you can see below, SMH began to sell off immediately and
approached the lower boundary of a gap zone. My question was: “Can it bounce
off?” I was even thinking about shorting the issue if it slipped below
yesterday’s closing price (30.78). Why did I decide to buy SMH? One reason was
the Market Volatility Index (VIX.X). It formed a bearish engulfing bar
shortly after 11:00. That made me think that the market might recover.
11:41:40
Follow up on SMH
Selling the rest to lock in a 25-cent gain.
Have a productive afternoon session.
If you have questions, feel free to mail them to me.