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Remember those tests in school when you were a kid? Here’s the question before us right now:
Where’s the market going?
A: Up
B: Down
C: Sideways
D: Not enough information
DJI is trading right at its 200DMA as we speak, and while that 300+ point day was nice and everything, nobody really “believes” in it yet.
SPYs are still a full point below the 200DMA, and given that it’s options expiration week we might not see a retest until next week. We’d like to wait to see what happens at the next retest before committing to a position there.
QQQQs are still well above their respective 200DMA, in spite of that recent nastiness - and that’s why we already have a position there.
VIX is holding its nice uptrend on the daily chart. Also, check out the CBOE’s new volatility product, the VXV. It tracks the 3-month SPX implied volatility (the VIX tracks 1-month IV). Good commentary from Adam and Bill. Those other two new products (VPD and VPN) are interesting, too.