Wednesday, March 23, 2016

Mar 23 - Waiting for more VIX / SPY divergence

The last intermediate term top VIX/ SPY negative divergence lasted about 1.5 weeks (first yellow box)  Looking for at least a week of that also here (second yellow box) before getting aggressively short.

 If we hit the next level of resistance, would be a very good risk to reward short entry

This ratio is signalling we are close to a top
 PMOBUYALL signal triggers early in strong uptrends but we are seeing signs of cracks in the small red bars
 Put call ratio also signalling excessive bullishness

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Feb 27 - $shak primed for a big move

Still holding $RIG Mar2 and Mar16 calls which are up 100-200%.  $shak settling nicely and I have plenty of time with Jun 45 calls