Today's session ended in a similar fashion to the previous Friday, with a triple distribution trend day to the upside. Despite great efforts, sellers were unable to take advantage of the ON weakness.
Thanks very much for your response. You are correct as far as chasing targets outside the zone. I was confused when you mentioned yesterday when the vix didn’t confirm the weakness around 3900 that was the invitation for longs so I thought the same today was with shorts. I suppose I need more discipline
What happened with vix rising along with es? Kinda gir smoked today as I sold my calls early and went short when vix was confirming strength when we were above 3960
"If we break and hold above 3956, a VIX below 19.47 would confirm strength. A non-cooperative VIX may suggest possible reversals i.e trade setups."
Today, VIX failed to remain below 19.47 while ES remained above 3956, indicating caution should be taken when chasing longs. However, this is not an invitation to short, which I've mentioned very frequently. Not trading is also a position.
One should be on the lookout for potential reversal signals, such as when buying effort fails to push prices higher when VIX is non-cooperative. However, today buying effort was able to easily push prices higher.
I didn't initiate any trades during the PM rally because VIX didn't provide confirmation of strength, when holding above 19,47. I generally don't initiate trades outside of the intraday targets, regardless of VIX. As a result, I missed the entire move today, which is unfortunate but in the long run, it's better to miss a move and avoid chasing it at poor location and risking a reversal. This type of squeeze is something we don't see very often.
The correlation between ES and VIX is simply a tool for context that traders can use alongside their own trading strategies. I never make trades solely based on this tool. I will remind my readers of this more often going forward.
Thanks very much for your response. You are correct as far as chasing targets outside the zone. I was confused when you mentioned yesterday when the vix didn’t confirm the weakness around 3900 that was the invitation for longs so I thought the same today was with shorts. I suppose I need more discipline
Thanks smash! HAGW, see you Sunday for prep for next week!
Congrats on 20K !
Thank you!
Most consistent weeks I’ve ever had since following you...Have a great weekend, you deserve it! 👍
HAGW Smash! Amazing work this week!
Thank you!
What happened with vix rising along with es? Kinda gir smoked today as I sold my calls early and went short when vix was confirming strength when we were above 3960
"If we break and hold above 3956, a VIX below 19.47 would confirm strength. A non-cooperative VIX may suggest possible reversals i.e trade setups."
Today, VIX failed to remain below 19.47 while ES remained above 3956, indicating caution should be taken when chasing longs. However, this is not an invitation to short, which I've mentioned very frequently. Not trading is also a position.
One should be on the lookout for potential reversal signals, such as when buying effort fails to push prices higher when VIX is non-cooperative. However, today buying effort was able to easily push prices higher.
I didn't initiate any trades during the PM rally because VIX didn't provide confirmation of strength, when holding above 19,47. I generally don't initiate trades outside of the intraday targets, regardless of VIX. As a result, I missed the entire move today, which is unfortunate but in the long run, it's better to miss a move and avoid chasing it at poor location and risking a reversal. This type of squeeze is something we don't see very often.
The correlation between ES and VIX is simply a tool for context that traders can use alongside their own trading strategies. I never make trades solely based on this tool. I will remind my readers of this more often going forward.
Trading back in the balance area was key for me to stay away from shorting.