A quick look at the TrendX on the right side panel suggests we may still have room to go before a reversal of fortunes..as mentioned yesterday.
Momentum closed near the zero line on the intraday SPY TrendX chart (below) but the SPY Vixen gave us a clear BUY signal all day long (shortened session).
The concern at this point is that the VIX (S&P volatility index) is fast approaching 12 and that typically results in a volatility pop at some point. It also means that XIV (the VIX inverse) which has been the real money maker in the M3 SPY Trader is in jeopardy of losing momentum and possibly reversing. While this may not be the time to seek cash it may be prudent to set some money management stops to preserve the capital gains that have accrued over the short term.
Wishing all of you the best Holiday season, regardless of your persuasion, and looking forward to a rewarding 2014.
