Okay, this should be the last post for the weekend but this is important so I wanted to point it out. The daily VIX chart shows a very good bearish setup for stocks. The VIX closed today beneath the lower bollinger band which sets up a bearish signal for stocks. Once the VIX rallies to close back above that lower bollinger band, the signal will be executed and most likely within a day or two the stock market should fall.
So despite the EWP structure not being too friendly to us in the Dow, S&P and Nasdaqs, the various other technical indicators I've mentioned here today are well positioned for a big selloff to occur next week.
Okay, I'm all done. Good bye!
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
3 comments:
Thanks for the update Todd!
This might be something to look at, it seem to be following your counts on financial XLF. FAZ chart below
http://i270.photobucket.com/albums/jj112/kimmichaelp/faz-1.jpg
I brought some Oct10 FAZ options call today at 1.00 a contract when it was near the bottom of the green line, 10 minutes into the trading day, then FAZ made a new low at the close and my Oct10 FAZ options call didn't went below 1.00, its at 1.09.
Hey Michael, I'm short the XLF through puts myself. This FAZ looks scary, lol. Quite a lot of movement in this guy. But if financials tank in the next week or two you will do very well I'm sure. Looking forward to next week man, it's setting up nicely.
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