more than a dip, not quite cheap $qqq $spy $vix $vxx
MMTH, The percentage of stocks over their 200 day moving average, is a useful tool for clues of the broad market technical trend. Combined with vix volatility index, which measures option premium of at the money options (implied moves), we can get confirmation of changes prices and sentiment. Vix is also called the 'fear index'.
By looking at the chart made here, we can see that the extreme lows in MMTH and extremes highs in vix volatility were major buying opportunities. We also observe the tiny dips in a uptrend that were also minor buyable opportunities. The most difficult part of decision making is determining if current selling is a small dip to be bought or a larger correction to be avoided until concluded.
I dont know if the selling is over, but I do observe that this was not just a tiny buyable dip in the bull trend. I will standby and wait for upside confirmation due to the risk. Especially since fundamentals mark the sp500 above the averages values of 1.5x price to sales and 15 price to earnings, we should be more cautious than greedy when technicals are unclear.
By looking at the chart made here, we can see that the extreme lows in MMTH and extremes highs in vix volatility were major buying opportunities. We also observe the tiny dips in a uptrend that were also minor buyable opportunities. The most difficult part of decision making is determining if current selling is a small dip to be bought or a larger correction to be avoided until concluded.
I dont know if the selling is over, but I do observe that this was not just a tiny buyable dip in the bull trend. I will standby and wait for upside confirmation due to the risk. Especially since fundamentals mark the sp500 above the averages values of 1.5x price to sales and 15 price to earnings, we should be more cautious than greedy when technicals are unclear.