Bit of a FED backlash today as yesterday's happy dovish FED minutes were rethought as an indication of global weakness, uncertainty and hence, danger. It was an S2 pivot day for SPY on sub-par volume (surprisingly).
Gold and TLT (bonds) were the big winners as the VIX jumped 18% at one point.
On days like today the true worth of the delta neutral SSO/SDS (SPY X2) model becomes apparent. Not everyday is a big winner like today but the DN tactic does produce a steady ultra low risk return when properly monitored and with a trailing stop in place.
The lower panel shows the relationship between the previous close to low, (PCL), ATR and open to close (OC) trends....all nicely aligned....the type of synchronized pattern that bodes well for high probability trading odds.