Vix Hits Major Lows
You might want to tread lightly on the call
side as the market has become overbought and the Vix readings are very low on a
relative basis.
Internet
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) failed to materially
participate in Tuesday’s rally. This suggests that the three drives to a high and an inverted cup and
handle patterns (mentioned Monday night) remain intact. For the nimble, continue
to look for buying opportunities in puts and put spreads here.
For you OEX traders, the Vix continued to
implode on Tuesday. Its now at its lowest level since last September. Continue
to look for buying opportunities in puts and puts spreads here but don’t fight
the tape–wait for confirmation in price.
Follow Up
If you took trades
in biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, you might want to lock in a
piece of your profits as it is becoming very extended.
Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!