Wednesday, April 1, 2009

VIX Setting Up For The Perfect Storm

Wow. I could not have drawn it up better myself. If VIX can get down to that 42 level or even 41 at EOD and if PCR data can continue to move to the call side, we will be setup for a very clear short opportunity. Today longs win, as expected. But after today, lookout. But lets wait for what the close gives us. If market moves down from here today, I don't see the big bang coming.


  1. Hi Beamer,

    Is it possible that the markets may continue to do well until the G-20 meeting is going on? The rally could potentially be shown as a confidence indicator that financial markets believe in all the steps US GOV is taking to fight the economic crisis.

    Once the other nations agree with US on various matters, all hell may break loose.


  2. Nuova, of course that is possible. But I really do not thinnk G-20 is driving this market at all. Nothing comes out of G-20's directly in most cases. Just discussions of potential actions later. But your assessment that market will go up because sentiment will be that U.S. govt is doing everything right would be a dream and is not fact.

    I don't see any good news coming anytime soon after tomorrow. We are setup for a nose dive right now. So much good news priced into the market right now and almost all of that news was not real data, but hope that new plans will work and also spinning marginal data into what sounds like good data.

    The technicals will give us a better story at the close. Lets see what happens.

  3. S&P is near the highs of the day. Vix is near its lows. Is this the short entry point you're looking for?