The market is obviously oversold and due for a bounce. Yesterday volatility, especially VXST barely moved and that is usually (not always) a sign that a rally is very close. For a free trial to the Daily Battle Plan, click here!
Wednesday was only the 18th day in 2013 that SPY lost more than 1%. The VIX jumped over 10% and VXST (9 day volatility) spiked over 20% which is an exceptional one day move. It appears that the panic button was hit on Monday as protection is being purchased ahead of the December 18th Fed… [Read More]
Tuesday was the second day in a row that VXST (9 day volatility) had a spike and this time it was even larger than Monday’s spike. This movement in VXST is nearly identical to the movement seen ahead of last week’s downward move followed by Friday’s rally. This type of buying of short term protection… [Read More]
Monday was a typical bull market follow through day for the S&P after Friday’s rally. What was not typical was the muted response in the Russell and the 5% spike in VXST (9 day volatility). At this point no one in the mutual fund industry is going to risk giving up big gains for the… [Read More]
That was a perfect rally from oversold conditions. If you’re trading with the signals from the Model Portfolio you should have locked in your gains on the close. The market is now slightly overbought. Volatility collapsed the past two days and has reverted to its mean from the early week spike. At this point there… [Read More]