‼️ Higher Highs to End a Record-Setting Week
Welcome back to the Rude Awakening for Friday, April 16, 2021.
Deja Vu: Markets are up across the board this morning. New record highs once again. (Surprise, surprise)
There isn’t any major news coming out today that will likely sway markets in any direction, so it will be interesting to see how we close out this record-setting week.
Like I told you yesterday, this is an unsustainable pattern. And so, if you’re looking to get some protective positions in place, to hedge yourself with some downside profits…
The Fear Index
Today, I’ll show you a juxtaposition of the S&P and the VXX, known as the volatility index and sometimes the fear index.
You will see that these two look almost like exact opposites in terms of recent activity.
As the market goes up, fear goes down.
The saying goes, “When the VXX is low, it’s time to go. When the VXX is high, it’s time to buy.”
It acts as a contrarian indicator in the marketplace.
The VXX is low right now. Which tells you there is a ton of complacency in the market.
One of the ways to position yourself for when the S&P gets the healthy retracement it needs would be a smart set up trading on the VXX.
We get into how this should inform your trading and what to do with a VXX trade in today’s video.
Have a safe trading day, folks, and a good weekend.
We’ll talk again Monday!
Editor, Rude Awakening