MERRY CHRISTMAS to all.
As mentioned some time ago, equity markets became vulnerable.
When we have such a condition, VIX (Volatility) is going up.
The uptrend has potential and at some time we could see 100 for the VIX.
For now I expect it to potentially reach 50, then a reaction for markets (down VIX) and after that, the uptrend for the VIX will resume.
I had also mentioned in several of my messages that it is time to preserve Capital and that Cash will be the King again.
Nothing has changed to that.
Any reaction in equity markets should be considered as an opportunity to decrease long positions and increase cash.
Also once these reactions fade, shorting the markets should be the correct strategy.
My opinion is that we have already entered in a Bear market and 2019 will be a very interesting year...
As mentioned some time ago, equity markets became vulnerable.
When we have such a condition, VIX (Volatility) is going up.
The uptrend has potential and at some time we could see 100 for the VIX.
For now I expect it to potentially reach 50, then a reaction for markets (down VIX) and after that, the uptrend for the VIX will resume.
I had also mentioned in several of my messages that it is time to preserve Capital and that Cash will be the King again.
Nothing has changed to that.
Any reaction in equity markets should be considered as an opportunity to decrease long positions and increase cash.
Also once these reactions fade, shorting the markets should be the correct strategy.
My opinion is that we have already entered in a Bear market and 2019 will be a very interesting year...
Comment:
I am buying today the VIX as a 1st new position in 2019