etfmsolutions: XIV Reverses Midday on ALERT...6.9.14

Monday, June 9, 2014

XIV Reverses Midday on ALERT...6.9.14

It was smooth sailing early on with a little red on the Qs but the indicies eventually went all green bringing DIA 170 even closer to reality. The caution was that both VIX and XIV were green....a contrarian divergence of momentum. Then, midday, XIV reversed to the downside and closed in the red with a vengeance (see SPY Trader chart below).
This action caused the M3 ALERT to signal a STOP although our momentum ranking remains intact.
Regular M3 users know its better to be safe than sorry when such ALERT reversals occur as they may harbinger bigger and/or longer drawdown risks. With SPY and DIA kicking RSI2 readings of 99%+ technical bloggers were almost universal in their prediction of a near term downturn. Caveat emptor.

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