Just as an aside note in answer to an M3 user's question as to which signal to follow when the Short Term Alert and the rankings diverge...example> Alert Stop is active but XIV still shows in #1 slot......I generally go with the ALERT signal.
VIX rose 11% while XIV was down 4% intraday. The opening green in the indices came under selling pressure and the biggest loser today was hands down XLE, which has been on a juggernaut roll for weeks.
So what's a guy to do for the next 6 months to limit risk exposure and still work an attractive risk/reward scenario? One idea, which I've mentioned before, is a 3 prong option strategy, that has a fixed $ downside and which can be applied to both bullish and bearish market conditions. A sample idea for playing SPY's current situation is shown below. You can check out other ideas here for free.
