Tuesday, April 21, 2009

VIX Update

I guess I should comment on the VIX. It has spent the better part of the last 29 days under the 20 day MA. It happens that the same happened in December thru early Jan for 29 days.

Also, the VIX is now slightly below the 20 day MA right now and likely to cross it soon. Until the VIX gets back above 42, I can't say that this is going to be a major correction. But, that said, I think this is going to be a major correction (down to 760 at least). :)

I am travelling most of the day tomorrow so I won't be watching the market. Which is probably a good thing because many investors make the biggest mistakes the day after a big move.


  1. I hope you covered some of your shorts yesterday. It was pretty painful today. CNBC is talking up the financials again.

  2. VIX is pretty tame these days. Everyone's talking about how the banks are good places to park investment money. Cramer is saying that Bank of America is a good long-term investment that will rebound hugely when the housing market recovers this summer. What are your thoughts?

  3. Jay, read my blog from last night. I clearly said not to get crazy and I said bears should have taken profits.

    I was travelling today so I had no time to watch the markets which is why I took most of my profits yesterday knowing I could not watch. Still have BAC puts with covered calls. But I think we are entering a downturn in the market.

    Again I have been telling people not to play financials as a whole. I like BAC as a short but only BAC. Financials are so unpredictable and dangerous

  4. larry, please read my past posts. I have been telling you that financials are too risky as a whole, especially the etf's. Find particular banks that are bad or good and play them, but not skf, faz, fas or uyg. If you want to play those etf's, you may as well go to vegas

  5. Your comments are good, and check out also the ratio chart for SPX:VIX or SPX:VXO - wobbling at its 200-day MA. I've also got the VIX as having hit a low point, .786 Fib retrace in synch with the Armstrong model's interim high point - additional reasons to share your views.