VIX Hits New Highs
Use extreme caution if you are considering
taking any new positions.
Nearly all sectors
were hit very hard on Monday. With that said, on a relative basis drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) and healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating) held up well.
For you OEX traders, the VIX hit its highest
levels since October of 1998. Under normal circumstances, this would likely
provide for a bounce play in the index followed by a reversion to the mean in
volatility. However, as you know, these are not normal times. We are in a news
driven environment. Therefore, use extreme caution should you decide to take
trades here.
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Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!