Wow it's so hot here in Florida, its unreal!! Hope everyone is having a cool weekend :-)
Ok now on to the tape, We are in the minor wave 2, we are in the process of a b c pattern, and I believe that we are close to finishing A and now heading to form the B Wave around 1090 maybe 1085, around the 20 day moving average.
if you are short you might want to cover there, then I see us moving back to the 61.8% Fib level around 1150 area to finish the C wave and finish the right shoulder. That is in the short term and think that the bulls will have the advantage for a wee bit more ;-)
Now the VIX is ready for some rocking and rolling, as I mentioned to you guys last week. It is severely beaten up in the last few weeks and I do believe we have bottomed out, maybe a hair bit more, but according to the charts, it is ready for some relief. I see it correcting to the 30 area, before falling back in it's channel. Retest the lows, then push on for a higher high ;-)
All the Lower indicators are rolling over with the exception of the weekly which would take it a bit lower, but I am adding to long VIX as early as Friday. Everything is lining up for a short term correction (B Wave) that will take us to around 1090 or 1085 area. there is way I go long via certain stocks, but not the spy as the VIX will come back in as we go up and so will your call options.
Now RIMM is coming up this week the 24th after hours, so I will have a monster trade on RIMM and if you are in the lounge you will go along for the ride ;-) I plan on hopefully banking some major bucks on this one. Do NOT BUY STRAIGHT OPTIONS FOR earnings or you will get hurt unless you are deep in the money and they are too expensive. I will pick a smoking spread to play with and try to double, triple or even quantuple my investment..
Now here is a brief video on the SPY's, GLD and the VIX along with a couple of charts (yes I am feeling industrious) hehhehehehe of the EUR/USD and the AUD/USD
