Click on Charts to Enlarge
The top chart here is a 30 min chart of SPY. The MACD is elevated as price is reaching the 191 area that I have highlighted in recent posts. I view this level as a shorting set-up and may track some trades here based upon short term technicals and real money sentiment.
The second chart is the VIX on an hourly time frame. The set-up here would be for the VIX to touch the lower 20 period bollinger band which would be an indication of a potential short term extreme to act upon in contrarian fashion, assuming the larger trend is down, or that a retest of the recent low will occur. The best set-ups occur when price pushes higher but the VIX fails at least in a very minor way to continue lower as price moves higher.
The bottom chart is the total put/call ratio on an hourly time frame. Again a move outside the lower bollinger band here would be a possible short term topping signal, though it won't necessarily mark the precise high.
Prices are set to gap up here, and in my opinion a short position at the open would be a reasonable play. If I go in here it will likely be with SPXU and without a stop on the position. I will wait for an opposite extreme to develop and exit or place stops when that occurs.
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