Monday, January 5, 2009
The VIX indicator is getting close to a signal
As the VIX clearly marked the high (low in the markets) around 80 with a 13 count - we are now nearing a low for the VIX and hence the high of this engineered rally as we count an 11 today. Level wise in the 35-38 zone this market should make a severe low and volatility should start rising again. As next week the earnings season kicks off the scenario for such an change of market volatility is very likely. Since we will likely get a similar price pattern for the markets like Oct 2002 and Mar 2003 - a double bottom pattern as all severe bottoms have that kind of patterns usually and the market is clearly overvalued. We have had a clear window dressing show down so far and a kick start buying marketing campaign. The other best first trading day by the way was the Jan 2003 event.
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About Me
- getagrip
- I am a professional independent trader
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