STILL THE ONE
I have to be brief today due to time constraints. The above chart of the VXX still has a buy setup I have been stalking now for 3 days in place. This setup is even better now due to it being a possible trap breakdown and reverse if it were to trigger today. We are fighting a monster uptrend in stocks here, so maybe this will just keep going down and never trade up above a prior days high until the setup is negated. This is why I always enter above highs and lows instead of at the market. The setup needs short term strength to be validated.
Remember, this is a buy in the VIX which is buying volatility. This is not the same as buying stocks. It is more often than not the reverse. Usually we get volatility increases on stock declines not rallies. I do think we are headed straight for 1235 in the SP 500 at the least, and the trend on all time frames is up. As I have stated over and over, there is no reason to blindly short the market as a whole during a blow off move like this. I do think in the very short term a pullback is way overdue now and I am trying to play one. However, I trade on breaks and rallies and my orders on the indexes on the short side have not been filled yet.
I do have them resting again today below current levels, and I did get short a few individual stocks yesterday, but do not just short the SP 500 at the market without some type of trigger to get you in.
Can't wait for the IRS to be in charge of health care - for those of you who might have read any of the bill, that is what is about to happen