Hi Shoppers,
Wow what a market!!
Talk about bullish! I called $7353 but expected it to take a bit longer.
But oh no Marylou, we hit $7353 on Wednesday and blew right through it!
Check it out on the chart:
The trend is your friend… don’t fight the trend.
The S&P 500 is up 842 points since April first.
A general rule of thumb is when the market (or a stock) rallies the implied volatility tends to go down.
Think of implied volatility as the price of options.
So as a stock moves higher that extra premium or juice in an option price tends to seep out.
The VIX which tracks the option prices of the S&P 500 (SPX) has dropped from 27 to 17 in this same time frame from April first.
This is where my service Option Shopper shines as we concentrate on buying those cheaper options and watching them explode.
The S&P 500 Futures have just crossed into the next channel of the pitchfork and have room to run to $7600.
That means the VIX can return to its lows of around 13.
There is plenty of more money to be made in this market as we continue to ride this trend.
Now for Thursday, since we did blow through the median line, expect the futures to come back and retest that level at $7353 and then rally from there.
That provides an opportunity to go long and ride it to $7600.
Thank You For Reading … See You Next Tuesday,
Licia Leslie