Good morning traders!
After some well deserved (and most likely nedded) vacations, I'm back in the saddle. Here is the Pre-market recap:
20 Days trend: Up and becoming stronger. The fact that we are in the upper limit of the current trend, makes me think of correction,
VIX: 17.0. This VIX level is the lowest we have seen in a long time. If the correction is indeed on comand, we'll see the VIX start to rise, if not, we might see it stay put, or go even lower.
Market:
The market has been pretty much balancing around the previous VA, where it put a considerable amount of volume, telling us we have a fairly accepted area up there. This market has been kept with an up trend, but the current option levels tell me somehow that this might no stay this way for much longer, and there might be a correction or even reversal on the short term, I belive the key to know this will be the VIX levels, and theif we start to balance on the upper values of the current VA, or if we brake free to lower or higher. Here are the three more likely scenarios as I see it:
1.-We go test the higher part once more, and come back to the previous VA, where be balance, making this a bigger area.
2.-We fail to keep the balance in the previous VA, and fall even lower, and start to look for value down there.
3.-We break higher from curren value.
At this time, I'm neutral, I'll wait for the Unempoyment Report before making a move this morning.
After some well deserved (and most likely nedded) vacations, I'm back in the saddle. Here is the Pre-market recap:
20 Days trend: Up and becoming stronger. The fact that we are in the upper limit of the current trend, makes me think of correction,
VIX: 17.0. This VIX level is the lowest we have seen in a long time. If the correction is indeed on comand, we'll see the VIX start to rise, if not, we might see it stay put, or go even lower.
Market:
The market has been pretty much balancing around the previous VA, where it put a considerable amount of volume, telling us we have a fairly accepted area up there. This market has been kept with an up trend, but the current option levels tell me somehow that this might no stay this way for much longer, and there might be a correction or even reversal on the short term, I belive the key to know this will be the VIX levels, and theif we start to balance on the upper values of the current VA, or if we brake free to lower or higher. Here are the three more likely scenarios as I see it:
1.-We go test the higher part once more, and come back to the previous VA, where be balance, making this a bigger area.
2.-We fail to keep the balance in the previous VA, and fall even lower, and start to look for value down there.
3.-We break higher from curren value.
At this time, I'm neutral, I'll wait for the Unempoyment Report before making a move this morning.