Last Night’s Strategy Work Right On Cue, So What About Tomorrow?

Welcome back everyone!  This video will be shot with a little less than an hour and half left in the market.

The bottom line is that the strategy we told you about worked flawlessly.  One of the two strategies we were looking for was if we were going to stay above the speed lines, and take back off for the market to become a long after that.  Whether you are looking at the S&P or the RUSSELL that happened.  Just how we had that sell off at that open, a rally into the afternoon followed.  It is important to understand where we are at.

We have some key levels on the VIX.  We are back to the 12 area now.  Very seldom do we get down, and stay down in this area.  We get down to 12 and usually spike back up.  That would usually bring the market back down.  Every once in a while we will dip down deeper.  If we can dip down deeper, that could lead to a good blow off rally.  We will watch and see if we can continue that.  If we can push down towards 11 we could have a nice blow off.  Today we opened up, had that pull back, but stayed above the speed lines.  Because of that we were looking for the long side trade to come into play.

Tomorrow I will basically look at the same stuff.  The real key is the VIX 12 level.  Do we push up from the 12 area towards the 1250 area?  If that happens I will look to see some instruments, like the NASDAQ or DOW to get below their speed lines.  If that happens we could be due for a nice pull back.  If we can hold the 12 and push down, I will aggressively look for long side trades.  That is the key strategy right now.

Gold, Bonds, and Crude Oil didn’t have a whole lot moving.  The Stock Index Futures was where the trading action was at today.  I was actually happy with that.  That will be the key strategy that I will be watching heading into tomorrow.  I hope to see all of you guys tomorrow!  Have a great evening!

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