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SPY VIX OVERLAY

First i would like to say sorry for my brief absence as i have been extremely busy with some other projects, but i caught back up!

As you all may or may not realize today is the day of the window dressing, the last hour of the trading day i am anticipating a surge in buying as the funds buy up all the outperforming names they did not have on the books in quarter two. You may ask how does one play this trade? I say stay on your toes and do not fight the trend. If the market rips up on larger than normal volume get long and ride the wave, even if you are a bear. This is a decent chance to make some rather risk-less profits on the coat tails of the big boys. As for the chart above you can see the vix is breaking down hard, which it should fall further near the end of the day today though we have still not traded back up to our “highs”. The bear market rally is coming to an end tomorrow, which will bring the vix back up into the near 30 level during the latter part of this week. Happy trading today, stay on your toes and hedge accordingly.

Tags: Dressing, VIX

Categories: Charts ,Commentary ,Exclusive

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