ok, so we hit the target this week. 17ish. boom.
Now what?
I listed 3 possible scenarios.
Take a look at the June/July lows, that was a FIRST for the VIX. it finally broke down, below 12, to all time lows. When that happened, it became a crowded trade. Everyone was posting how dead the VIX was. My post from early July shows the sentiment of the market towards the VIX, BEFORE it starting its move.
Now, everyone knows we got hit this week. The VIX bounced in a big way, catching a lot of traders by "surprise". Well, almost everyone was surprised. :)
Now the fun part. Where from here?
The IWM shows a double top, which must be assumed. It looks to me like a rounding top formation.
the SPY is still in an uptrend. But, we are sitting on a upper trend line right here. While it seems like a great buying opportunity, the moving avg for the blue line is still a ways off.
I will be watching the VIX closely next week.
thanks.
tb
PS- I hope at least 1 person benefit from my trading idea.
