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“Monday was ….. well a pause?”


By Todd Brown :: Head Trader / CEO
Jun 30, 2008, 18:03
 


 

























Monday closed out with a small gain in the Dow and S&P while the Nazzy and Russell 2000 showed moderate losses. This is quite a change since the Dow has broken below it’s previous lows put in and the S&P is nearly there, the Nasdaq and Russell have quite a way to go to reach those lows which is concerning.

Also I am watching the VIX. Every low this year has been seen with a spike above 30 and we are quite a way from that level. Is this the holy grail? NO. It is an accurate look at fear and greed levels in the markets and at this point we haven’t seen nearly the FEAR that we did earlier in the year so it seems we have more downside to go. This is not a time to initiate a new position long or short in my interpretation of this index. Typically and that is what we want is what “normally” happens is the VIX will spike when everyone is scared out of the market and just throw in the towel. That is the sign of bottoms and at extreme lows Tops in the market. So watch this closely and lets see what happens.

This is not the time to be a hero. The markets will be here.

Always TRADE WHAT YOU SEE

Matt





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