Ted Williams, the great Red Soxx hitter is known for dividing the strike zone into 77 cells, each the size of a baseball. He was a very “picky hitter!” He only took a swing at a pitch he likes. I have found it “pays to be picky” when it comes to patterns too!
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Game Plan….Buy PSQ with a 2% stop. Am going to take a swing at scoring on defense due to the “lack of fear” that is present in the chart above. The trend is up in many markets so I will not give this trade much room to be wrong! I like the pattern above, yet I am not predicting the same decline as took place at (1)!!!
TA…. a similar chart of SPX and the VIX? The spread between the 500 and VIX is large. The 500 is little bit above the 4/2010 high, yet not close to the highs reached back in 2007. The NDX is testing the highs reached back in 2007, which should be a more important level to break of fail at.
Hello Chris, how about a chart similar to this on SPX/SPY? Is it exhibiting the same behavior? Perhaps even RUT/IWM.
I believe a small correction is due and would like to see which one is a better “score on defense” 🙂
Thanks for all your great work!
Great chart! Bullish sentiment on stocks as well as complacency is now at bit of a crazy level, where one should be careful about entering the long side. Report here.
Bill… Sure you can use them, when they have a fund that corresponds with the suggestion.
CK,
I follow your blog for a long time.
I am taking this short position, i can only trade through rydex fund which only allows for 2 times a day transaction. IS it possible to trade with your style in rydex funds.
thanks
Bill
Hi, Chris: what do you think about VXX at these levels? Last time you mentioned it, it was trading around $45/sh…