No new trades - But see yesterday's "Short Ideas" for new trade ideas, except move the strikes closer to today's at-the-money options. Those VXX calls are up 100% just today! Thursday was a volatile day, but unlike Wednesday it was not in just one direction. This is exactly what happened back in early February but it went on for 2 weeks before the indexes ultimately bottomed out. That low was tested about six weeks later. In other words, there is more volatility ahead. Below are WEEKLY charts of the four major stocks indexes, and Gold (GLD). There is no doubt that the character of this market has changed. It started with the emerging markets (EEM) and has now spread into our domestic market. What to buy? Index Puts (IWM, SPY, QQQ) Volatility Calls (VXX, UVXY) and as soon as it wakes up and starts to move, Gold calls. (Gold is up $28 today, see chart below.) Next week looms as a "confirmation week." Imagine another down weekly bar only this next one doesn't touch the just broken lower channel line above. The market will accelerate down and by then our entire portfolio will be flashing new Sell signals. If this comes to fruition (the market does what it wants to do, not what I say it should do) we absolutely will be prepared. Year-to-Date Weekly GLD chart:
