VIX REVERSAL

The VIX reversal all the bulls were looking for finally appeared yesterday afternoon and now the obvious question is will it stick. It is still 9% above its 10 day SMA and the jury is still out. My take, yes, we will begin the VIX drift lower, the market drift higher and CNBC will be yapping about all time highs on the DJIA some time in the middle of next week. We are only 270 DJIA points or two or three good days away.

There is lots of chatter this morning about the break in the RUSSELL 2K (IWM) - I am not that concerned about it, IWM had the best run so its had the biggest fall. Lots of traders like to focus on the exactness of the trendline line fit, but I rarely find that a good money making strategy. I like to step back and look if its an uptrend and how far stretched it may be from moving averages.

I bought some yesterday and anticipate holding until the Volatility indexes or RSI levels tell me its time to sell.