By Lawrence G. McMillan
The feature article outlines several potential trading signals that are setting up in this volatile, bearish market. In fact, most of the articles discuss current market conditions, because those conditions are quite interesting at the current time.
On page 4, there is a day-trading recommendation, based on the daily Total put-call ratio
Our market opinion (page 6) remains bearish, since the intermediate-term indicators are still negative. However, myriad oversold conditions could spur a strong, but short-lived rally at any time.
A long-term hedged strategy is outlined on page 7, but it only works if you think a more normal (non-Fed) scenario will unfold.
A $VIX “spike peak” buy signal is setting up, but hasn’t issued its buy signal yet. The recommendation for that powerful signal is on page 8.
Also on page 8: a brief article on the new $VIX methodology, which is now in place.
On page 9, there are two volatility derivatives recommendations: 1) a speculative recommendation based on $VIX crossing above $VXV, and 2) a $VIX/SPY call hedge.
There is also a GLD tradeon page 9, and an EEM contingent trade on page 10.
There is no section in this newsletter on naked puts, as none are statistically valid at this time.■
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