Trading Alert: The market gapped down at the Open, found some temporary support and is now consolidating. That could be it for today's lows, or, a resumption of the decline triggers the trades outlined below. Pay special attention to market direction going into the close. The hourly VIX trading model generated a Buy Signal at the Open this morning. A print above that bar's high print of 16.27 confirms the trade, looking for a quick move into the low 20's, minimum. We already own the VIX Sep 20th $20C and if this hourly signal is confirmed, this call is well situated for a 2X to 4X move over the next week. VIX Hourly VIX Sep 20th Calls On a VIX break above $16.27 any calls in this table are candidates for purchase, looking for a quick double or triple on VIX spike into the 20's. SPY Hourly If SPY breaks down to a new daily low (below 443.37) a third wave down to much lower prices is likely underway. If so, more SPY/QQQ puts and/or VIX calls would be in order.
