Friday, May 18, 2012

WHY I LOVE THE VOLATILITY INDEXS

Here is a chart of the XIV, which is the inverse of the VIX.

Stock markets take the long way around to a final destination, always. We can see in the XIV chart, despite countless Europe interventions, Fed speak, and trillions of dollars spent-XIV has managed to simply make a lower high, confirming the overall larger picture, which is a confirmed bear downtrend.

I have marked the change of direction DOJI candle, confirmed by the long reversal candle the following week.

Continue to build positions in VIX trading products such as TVIX; take advantage of what will be a long slow bleed of Americans 401k retirements, and the ensuing panic that is sure to set in.

Tim Kathlina

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