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Wednesday, May 6, 2009

VIX: Do Or Die Time


If we see pattern failure on this giant wedge then rally still on. If we reverse higher from here on VIX, then rally to stall here.

7 comments:

Shawn said...

I mentioned the other the wedge that I think is in play. VIX must not crossed below $32 today.

http://img513.imageshack.us/img513/4058/vix.jpg

Stewie said...

yes shawn. I am looking at the same thing but still playing it long till we a definite break.

Shumushu said...

http://screencast.com/t/TZeAUPPdcw

Stewie said...

pattern failure it is.

Shawn said...

FYI. VIX has a descending triangle in the last 10 days. Typically that would resolve to the upside, soon.

Shawn said...

I might have posted here the other day. TLT, USD, VIX and XLF all lining up very well today for the top.

Would love your comments Stewie.

1) TLT bottom at $95.x. As pointed out earlier in an investment survey, bonds is the most hatred class out there.

http://img49.imageshack.us/img49/1263/tlt.jpg

2) USD is said to collapse too since it broke down an earlier trend line, but people forget there is the last stronger line. Expect around $83.5
http://img49.imageshack.us/img49/1939/usd.jpg

3) http://img513.imageshack.us/img513/4058/vix.jpg

4) http://img115.imageshack.us/img115/3849/xlfalt.jpg

Stewie said...

shawn. We are short via TZa and FAZ. this is the best risk/reward i have seen thus far. This morning's gap up had poor leadership and very poor form. watch market internals today for your cue on how aggressive you wanna be.

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