THE DOT - if this turns orange or red be alert

Tuesday, January 27, 2009

VIX tech outlook

The VIX daily clearly indicates that our assumption that the next days are up is confirmed. The wave up is finished and we have to retest the lows or at least produce 3 lower lows to yesterdays. Its more likely that we drop below 40 again briefly to test the gap once again before the VIX will rise above 60 again. The New Moon / Jupiter effect should carry the market a few days and the little window dressing effect for January as some will try to diminish the January effect which is not important at the end of the day. All big bear markets turn around at severe cheap value levels and we are far away from that as Dividends are also down to record levels and keep falling the overvaluation of stocks keeps rising. Big sell offs are due hence buy volatility in weakness as its supposed to go higher again.

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