Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Wednesday, July 11, 2012

VIX & SPX

After FOMC reports, the initial reaction is usually a fakeout move. The real action comes later and usually last a few days.
Given that the initial move today after the report was down (followed by an up leg), this indicates that we should expect the move up to continue tomorrow as that is the real move.
This was not the case on June 20th. After the report on that day, there was an initial drop followed by an up leg into the close (similar to today). But on the 21st, there was a big drop instead of the expected rise (based on my point). So what happened? There was news out of Europe that caused a big premarket sell-off in the futures that resulted in a big gap down to start the day.
So, all things being equal (with no premarket drama but a quiet/no big gap down open), expect a run up tomorrow and in the days to come (>=2days).

VIX-DAILY


SPX-DAILY IV


SPX-DAILY III


SPX-DAILY II


SPX-DAILY I


SPX-30MIN LONGER TIMEFRAME


SPX-30MIN SHORTER TIMEFRAME


SPX-5MIN
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