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Volatility Index

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bankedout
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Posts: 1,748

Volatility Index Nov 12, 2015 16:36:01 GMT -5

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Post by bankedout on Nov 12, 2015 16:36:01 GMT -5

The Volatility Index pulled back for what seemed like forever since the late August surge:

click for larger image

However, I believe today is a turning point.

I track XIV as the inverse:

click for larger image

It finally let loose today. XIV has been stalled out for some time, calling in to question all of the recent Bull campaigns in US Stocks.

Is EVERYTHING a short right now?....

I just wonder if we are at the best short sale opportunity in decades. Thoughts?

bankedout
New Member

Posts: 1,748

Volatility Index Nov 14, 2015 16:10:31 GMT -5

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Post by bankedout on Nov 14, 2015 16:10:31 GMT -5

I think the monthly chart of the S&P 500 supports my theory:

click for larger image

Notice the classic rounding top (circled) after a multiple year bull market. You can also look back at the late 1990s bull market.

I believe we are at a very attractive short sale junction here.

I have my eyes on the Biotechs, which have been the darlings of this recent bull market. Thankfully there are new 3X leveraged long and short versions of XBI that have excellent liquidity. I have plans to put LABD to good use.....

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