CPI came in a tad less than expected, the DJI gapped up 900 points, the S&P was up 100 pts and two hours later both were negative for the day. Bearish. SPX Mid-Day On CPI Tuesday Tomorrow is the FOMC interest rate decision but as we saw in the opening few hours of trading today, in bear markets good news doesn't last...it rots. VIX Buy Signal - Pending The VIX Intermediate Term Trend Model issued a Buy Signal on yesterday's close. A VIX close above yesterday's high, 25.05, any day this week would normally trigger an option trade, expecting a VIX move into the 30's over the next 4-6 weeks with UVXY up above $10 accordingly. But the inflation and interest rate news events this week, coupled with holiday light trading right around the corner, makes this a less than perfect set-up. Nonetheless, for purists that pray at the alter of, "A Buy is a Buy" when it comes to trading signals (count me as one), if VIX closes above 25.05 any time this week, here is the trade: Buy: UVXY Jan 20th $7C (1.10-1.15) Minimum Targets: UVXY > $10. $7C > $3.00 Stop: None (High risk - High Reward)
