Friday, December 2, 2011

Markets trying to breakout of the Volatile Loop

This week markets really snapped back on BEARS and within span of a week.. took the indices up almost  7.32% on SPX and DJI up 7.02%.

The Volatitily Index (VIX) also sufffered (-20.16%) when this move happened and the spread and slope of VIX   vs VXX (VIX Futures) have not become more milder. Before in Oct and November they futures were selling at discount and have a negative slope indicating market risk and fear.

On the moving average also VIX closed right there on its 30 Week MA or 150 day MA.. This is very positive indication.  Once the market moves above the sloping resistance



Here are the ETFs that made giant strides in last 5 days. I have been sitting out after that Oct 27 giant move up as it was very unexpected and then it was followed by lots of smashdowns in November. I lost a little bit in November around (2K) and have been on sides. Now with markets trying to become normal, I will start tip toeing back into markets.





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