In my most recent newsletter - dated Saturday Oct 28th - I stated that it was clear to me that we were getting "very close to a bullish reversal", and here we are - only 1 week later - coming off the biggest rally we've seen since July!
A week ago Friday I blogged: "if the $VIX is taken down below 20, then this rally has legs"
Judging by the way all the bears on CNBC Fast Money continue to badmouth stocks, we could see a massive short squeeze..."
I even alerted to the Bear trap on the $VIX
Rare $VIX chart reveal pic.twitter.com/pcZ3FSUx45
— Veteran Market Timer (@3Xtraders) October 27, 2023
This was after watching the head clown on CNBC Fast Money brag about the $VIX levels.
The truth is the $VIX could barely manage to hold the 20 level, after briefly testing 23 a couple weeks ago. Low 20's are not high $VIX levels, regardless of the bearish (false) narrative Fast Money traders try to spin.
If the $VIX could manage to trade into the 30's, like it used to... then we would be seeing far more effective shakeouts, followed by far more explosive market reversals (to the upside).
Does this rally have legs?
Fast Money Traders think it does... and since they seem to be the best contrarian indicators I'm watching, I want to take the opposite side of that trade.
There are several gaps that were left behind on the chart, and it's likely that we see those backfilled sooner, rather than later.
$SPX - fastest rally since July. Trend remains bearish
How should you position amid falling rates and a pullback in the dollar?
— CNBC's Fast Money (@CNBCFastMoney) November 3, 2023
"Gold, gold and more gold," says Tim Seymour
He and @GuyAdami @grassosteve and @KARInvest's Julie Biel break down the commodity breakout, and how to trade the miners. $GDX pic.twitter.com/KDy4NKffQe
Good luck, AA
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