Last week, I wrote here in my previous article on the VIX, noting that it had bottomed and was beginning to rise, even while the S+P was rising as well.and making historic highs.
That is a strong bearish divergence, and it caught my eye. Now this week, we know why.
Today, the VIX rocketed to the upside, up 25 % trading above 20. Seems the very sharp deep money traders in volatility had sniffed something out, and by simply following their lead, it would have allowed you to be in trade position, to catch this dramatic fall in the market this week.
Lesson learned..?
So do yourself a favor, watch the VIX every trading day, make it a point, go out of your way, for the insight and quantified big money clues, about where the market is heading to,.. next.
Very interesting observations.
I would not dispute much if anything of what you say.
Thank you.
mstable
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The Chinese will come with their begging bowls, Kau Tau, relinquish their economic strengths and advantages with great apology, and change their economic and political systems by Friday night.
So the market still thinks, despite the relatively tiny tumble the last day or so.It certainly still expecting new highs next Monday.
It might be right.
Gunboat diplomacy works for a day... or maybe a week... or maybe a little longer... but not forever....
We're at a little longer now... but forever never comes to this surging, ebullient, ecstatic, euphoric market.
He's now stoking up a conflict with Iran to float Crude Oil prices, which will automatically and dramatically levitate the whole stock market.
The power of crude oil prices on the current market is incredible.
Trump. certainly knows what he is doing and how the stock market really works. He's bound to get re-elected.
Crude will save America and Trump.