Monday, April 20, 2015

Rebound...04.20.15

The over the top selling on Friday was reversed to a large measure today, supporting our VDX forecast for SPY posted after Friday's close.  Volume was only about 50% par so Tuesday should give us a better picture of how much of today's buying was in fact the product of short squeezes.
This week is full tilt on earnings reports and the markets are still at the whim of exceptionally good or bad news.  Rather surprising to me the M3 is still in cash while LM has taken a more bullish position.
This remains a volatile high risk environment and for my own accounts I am assuming only 50% vested positions and closely following the stops. Next week may present a more favorable risk environment as we tag the end of month high odds window for the bulls.