Out of the gate stocks open higher than yesterday's closing and ended at near record high. The Bears were crushed as much as the VIX graph below.
From technical perspective the VIX is now in a downtrend and will continue if we follow MACD and RSI lines.
I say if is because VIX is not an asset and hence has no price. Reading this
I have a new found understanding of what this instrument is and hope to capitalize on future drops. Do not get me wrong the market is very difficult to read and gauge and even now I have no idea what will happen tomorrow. However trend is our friend and my prediction is a we make higher highs. I prefer to sit out of day trading under I get a better understanding of what I am up against.
It is very easy to go long stocks, but most days it seems big names run up while others either flat or down. We can see in the SPY the Advance versus Decline trend line that the Advance is diverging from prices.
We still may need the next couple of trade sessions to unfold to see if a pause or drop in market will occur, but currently it is still bullish.
Bonds dropped but nothing compared to the VIX so I am glad I am not in any of the volatility instruments. I consider this a win. I am looking into solid stocks in MCD and GE for long term holds, although I may have already missed out on an entry. I have a little FOMO feeling, but usually when this happens it seems a pause or drop is near. Will check back to see what I actually do?