Wednesday, December 30, 2015

Dec 30 - Equities drifting lower, commodities getting rocked...again

I just put on a short in SPY for a swing trade and plan on scaling in fairly large as we are close to a inflection point.  VIX is printing a buy and SPY is close to top of its range.

Not a huge amount of negative divergence but we do have a sell signal (mean reversion) on the hourly and very close to the top of the range.  It was enough for me to go short.

in 1999-2001 all the weekly tops tapped a trendline in RSI.  I am looking for a similar setup now
 The RSI trendline setup isnt as good but decent.  We are close enough to make me feel risk to reward this is a good set up.
 Potential VIX movement
 VIX buy signal on daily

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