Oil Spoils, VIX Fixes

Yesterday’s daily post’s title said it all: timing is everything.  Yet, I had no idea the gratification would be so instant when I posted the recommendation to short oil at 9:35AM.

CL is at or very close to the top of a long-term channel that could put an end to any further escapades…  The SMA100 [51.11] is obviously an important pivot point.  I’d want to be short as long as CL is below it.

By 10:30, CL had finished backtesting the SMA100 and was on its way toward our targets.  I dallied for a moment at a price level that would have satisfied the bulls, and then plunged to our secondary targets — registering a 6.8% decline off its earlier highs.

As exciting as it was to hit a jackpot like that, there was something troubling going on in equity-land.  Stocks, usually hypersensitive to moves in oil prices, were barely budging.  They were successfully pinned by VIX, which was moving steadily lower in order to protect SPX’s breakout.

continued for members


Sorry, this content is for members only.

Click here to get access.


Already a member? Login below

Remember me (for 2 weeks)

Forgot Password