Monday, March 12, 2012

Will VIX Rally Right Now?

Today marks a very rare occasion when VIX trades outside of lower daily Bollinger Band. When this occurs VIX reverses and rallies back inside the band. Furthermore, you can see from the chart below that after the reversal it often travels the entire distance between the bands. With this being the OpEx week, I suggest you seriously look at protecting yourself against a possible quick snapback.

click on chart to enlarge

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