17 Jul
VIX should bounce soon
The VIX has bounced off the 20 day moving average after briefly testing it earlier in the day.
We saw it hit the top bollinger band, as we have many times in the past. Each time it reverts to the 20 day moving average. Once there, it reverts to a higher high. Today’s earnings disappointments from GOOG, MER, MSFT and opening up with C’s likely bad earnings seems a setup for more losses.
Every financial was oversold, and every financial rallied. Seems to me the most logical course now is to continue down. Most shorts in the oil market will cover before the day is over. Fridays are tough for equities because no one feels like they are safe in the market over the weekend. Should play out well for our positions.