Wednesday, July 18, 2012

Very Important Support Line

VIX is at long-term support. Time to sell SPX. All the noise of better-than-expected earnings, which by the way are nothing but cost-cutting shenanigans as the revenues are consistently missed, will be well-forgotten in the wake of worse-than-expected economic releases. Tomorrow we get to see what Philly Fed looks like. After reading the Beige Book earlier today, I would say Philly Fed is going to be below expectations. Shorts are being squeezed into OpEx on Friday. After this event is out of the way, down SPX will go. Look out below!

click on chart to enlarge

1 comment:

  1. A simple but good reminder. We are indeed at that level where the only direction left is UP.

    Now would be the time to start stacking VIX calls ;)

    ...and many already are, even crazy August $50 strike, which is soooooo far out.