Yo Pit Crazies,

Every time things look ugly in stocks and VIX wants to launch, it cannot get into the stratosphere or what I call Zone 4. That is VIX above 24 and where it spends roughly 25% of its time. It spends 50% of its time below 18. Right now we are in Zone 3.

For what seems like 3 weeks.

I for one thought tech earnings would lift stocks higher and it has been a mixed bag.  Microsoft Corp (Ticker: MSFT), Intel Corp (Ticker: INTC) and Amazon.com (Ticker: AMZN) did ok.  It sounded like 1999 again for a minute.

This morning we have a red VIX open.

Like the Clash says, “Will VIX stay or will it go.”

Zone 3 is a very annoying range

My favorite VIX saying is money is made below 16 and above 24. I keep that in mind when I set up positions for The Trading Desk and OP Mentoring and Pro. Big VIX dough is made on a break out above 24. As long as I stay in Zone 3, I will hold my upside. If I break into the 18s I will dump it and look to ride my VIX puts lower. 18 to 14 is not bad either.

Check out the Chatter in the Pro Chat room next week if you are an OP Mentoring student.

To Your Trading Success,

AG