Volatility

volatility

Cherry Picking Can Do

If you like to cherry pick your strategic opportunities, here is an idea. Apply %BB-Oscillator to VIX data. Wait for breakout signals – %BB-Osc breaking above .99 for the VIX. Such volatility breakouts produce a high rate of change sell-offs in the S&P where you can apply your preferred short selling strategy like FastEddie (FE) or Eclipsed VII to the S&P mini or mid-cap. The...

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Small Caps Cracked

Today’s Chart of the NASDAQ reflects the August highs not being exceeded by the composite index supporting our newsletter commentary: “August 22, 2018, the Nasdaq futures are on an L-T rule #4, signaling the expectation for the monthly high to low range to expand. The current average range over the last seven months is 560 full points. If the range expands as expected to exceed this...

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How TEM points out a trader’s opportunity

The Technical Event Model signals an expansion of the weekly range after a rule #4 extremes are reached on the weekly bar. You can see in the weekly chart of Crude how the range of each bar expanded after the TE #4, the vertical yellow line. You can also see how the range has coiled up into a triangle that sets the stage for a 10-point run in the market. The chart windows on the right-hand...

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