The market 's on steroids today...the only concern is volume, which is abnormally low. Buffett's newly disclosed stake in Apple has it up over 4% while at the same time making the Qs the index star of the day.
Less we get too giddy with the anticipation of new highs all around there are a couple voices of gloom and doom to ponder. Barron's noted Carl Icahn's huge bet on a market crash (short 149%) and Goldman, whose recommendations are always suspicious as most likely self serving, are clearly in the bear camp. Today's action has all the hallmarks of a short covering rally although archaic rules covering mutual fund buys and sells may drive the markets higher into Tuesday, possibly back up to strong overhead resistance at 208.....where we expect a stall.
There's a new posting on M3 Insight with details on how the MVP setup trades XIV. The file was too large visually to post on the daily newsletter but is archived now for future reference. FYI.
This is a distinctly different way to trade XIV than using momentum or mean reversion but the results warrant a closer look.