This Is The Type Of High Probability Event That Traders Need
Last month we explained
that we were buying the VIX
(
VIX |
Quote |
Chart |
News |
PowerRating) because of a confluence of factors that
said even if the market were to go up the VIX would likely rally on a breakout
above key Fibonacci resistance at 1245 (boxed in orange).
This is the type of high probability event that all traders need to prosper.
Fortunately, many subscribers emailed us to find out how to profit from this new
contract, and although difficult to get a hold of, the spot price has rallied
33% on an un-leveraged basis since we bought it one month ago.
Meanwhile, stocks are holding to key channel support from the April-August
rally. September to October is the seasonally bearish period and the VIX usually
gets a head start on the action. As such we are patiently waiting for a
breakdown in stocks over the coming weeks.
Regards,
Jes Black
FX Money Trends
613 4th St Suite 505
Hoboken, NJ 07030
Tel: 646.229.5401
Jes
Black is the fund manager at Black Flag Capital Partners and Chairman of
the firm’s Investment Committee, which oversees research, investment and
trading strategies. You can find out more about Jes at
BlackFlagForex.com.
Prior
to organizing the hedge fund he was hired by MG Financial Group to help
run their flagship news and analysis department,
Forexnews.com. After four
years as a senior currency strategist he went on to found
FxMoneyTrends.com – a research firm catering to professional traders.
Jes
Black’s opinions are often featured in the Wall Street Journal, Barrons,
Financial Times and Reuters. He has also written numerous strategy pieces
for Futures magazine and regularly attends industry conferences to speak
about the currency markets.