Tuesday, July 14, 2009

VIX Future is flying again.../GOLDMAN/ BUSTED CHART PATTERNS

The Vix Future is at 1.14x the VIX in the middle of the option expiration week.

Buckle up this could turn into a bumpy ride......someone here REALLY needed his options in the money this week.....

Pls also see sentiment trader on this.



Talking about risk pls see how Goldmann is pumping up the Value at Risk figures to really produce some exceptional numbers. This all shows that all you need is a rally, you double up on risk and VOILA you get a dream Q2. This unfortunately makes you very susceptible to BLACK SWANS or proves your ignorance of MORAL HAZARD. If you on top then manage to get MAMA BEAR of the FINANCIALS (Meredith W.) to change here short term view (now that she is independent, running here own research shop...) you have a fair chance to live through a short term (option expiration week!!) fairy tale....


Just as an aside has anyone noticed that we see more and more chart patterns go bust in a way as if some large trading book(s) is (are) trading against them as soon as they become obvious knowing that everyone is seeing the same. (my 2nd Derivative theme!)
This lead makes the the busted patterns your best bets to play the patterns. Tom Bulkowski as some some remarkable work on this. Take the S&P500 which seems to bounce on the neckline (busted pattern) in order to scare and shake out the pattern followers in order to set up for the kill (?)...just a thought....



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