Another fade Friday. Fade the previous move during the week, that is.
The oversold nature of the Volatility Index (VIX) yesterday was a clue to a possible forthcoming selloff. Of course, just because a chart is oversold doesn't mean it cannot become more oversold and just because equities had rallied nicely didn't mean it could not continue. But now that we have seen the bounce in the VIX and the pullback in equities, we now should turn our attention to how far it could go and how long it could last. I've added one more line to the VIX chart from yesterday. Just as the horizontal blue line in the stochastics had been a decent point to get long volatility or short equities in the past, the red horizontal line has been the area to exit the trade or create tight trailing stops. ...255 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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