December 18, 2008

Market Review and Commentary for December 18, 2008

DISCLAIMER: These are trades I am doing and may not be right for
you. Use your own Due Diligence when making financial decisions of
your own choosing. This is NOT a recommendation of any security.
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The VIX hit the support target of 47-45 and quickly moved higher – the market, of course, went lower just as quickly.

If you know how to read the VIX you’ll be ahead of 99% of market participants. What’s amazing is that VIX hit the support level (as I’ve mentioned several days in a row) while the DOW, S&P500 never hit their potential upside targets of 9200 and 950.

Many people, including me, were looking for price resistance at the 9200 level on the DOW… luckily I was also watching the VIX.

The VIX traded at a level that would have had the DOW at 9200 but it never got there. If you were paying attention to prices alone you would have missed an excellent shorting opportunity when the VIX hit 45…

I currently have 20 SPY puts and am looking for a lower close tomorrow however we could still see the DOW hit 9146 before moving lower but there’s strong resistance at 8664. The key will be how we open tomorrow… watch today’s video for more info

WATCH TODAY’S VIDEO

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