VIX had a major gap up overnight with a big spike in volume. SPY opened up today with a big gap down in price as investors shorted the market.
Is it a good time to short the market after this huge rally? Or will the shorts that pushed the VIX up overnight get squeezed again like they did last April.
Don't fomo or panic into or out of trades. And just follow the trends. A trend is your friend.
VIX is pushing up higher highs again. So far today, during intraday trading, the short are getting squeezed. It is still too early to tell if the market is in for a reversal of the current rally. But you should always pay special attention when the VIX spikes up in volume and price.
If you do not know what squeeze I am talking about, then check out the link below. It has a detailed explanation about the squeeze moments that happen between the VIX and the SPY.
As always, this is not investment advice. Good luck trading. Be careful and be patient. Give your investments time. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. And just follow the trends. A trend is your friend.
Goh Choon Keat :