day4and5strongestrallysince1950jan8

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2015 has gotten off to some wild swings, to say the least. The past 2 days (4th and 5th day of a New Year) have been the strongest since 1950, pushing the S&P 500 up 2.97%. This comes on the heals of the S&P getting off to the third worst start in 65-years. (see post here)  Can these swings be taken advantage of?

I shared the chart below, pre-market yesterday morning. The beginning of the year decline had pushed the VIX (fear Index) higher, where it appeared to be facing triple resistance. (see post here). 

vixtripleresistancejan7

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The suggestion yesterday to members and on the blog was to short fear or in other words buy XIV,  

Every once in blue moon I will share this trade on the blog, which is my favorite of all tools to buy low and sell higher. If you like these kind of ideas, I would be deeply honored to share them with you as a member.  

 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past