The CBOE Vix index has bounced off of the 200 daily moving average and retraced over 70% from the march 2020 highs.
Looking at the news of shares fo bankrupt companies being bought and pumped, stock indexes making all time highs whilst there is zero fundamental reasoning makes me think this bubble will burst. Maybe not right away but quite possibly we will see stock market volatility return within 12 months.
When a large number of "bored" retail investors beat the "market wizards" like Carl Icahn (HERTZ) and Warren Buffett with the airlines, it is a sing that yes, retail investors may have won the short term battle but over a long period of time, they don't succeed.
The best trade for me is to buy VIX. It is a good protection against a drop in stock markets and a bet on future volatility to return. I have marked on the chart previous key levels for VIX to take profits.
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Mega bullish daily closure today. Great trade so far, let’s see what Friday and next week brings.