Last night at Trade Guild I warned that the VIX is at very low levels. The market had been probing resistance much of last week, this am’s gap up that got cut down in short order was not pretty, the volume increased and as of now it is making lower lows in some of the averages. Monday’s are not great days to try to divine the direction of the market, much like Fridays. However, I will say that I know some of you have decent profits from last week. Maybe it’s time to think about taking them. You can always hedge a little too with some TWM or SKF, we are considering buying some right now and have closed our position in PEIX-can always be bought again.
If you want to discuss your specific circumstance, then email me. We have a few trades that are up 5-6% or so and from last week, 60% in the first 30 minutes, but I’m not seeing much of anything move right now and that concerns me. So do what you have to do, maybe hedge a little, scale back, take some profits, or just hang tight and keep a close eye on the market. It really is too early in the day to be getting too worked up about it, but like I’ve mentioned, things can change at the drop of a dime and I haven’t expected this rally to last too far into January.
