Fun Fact #12
Did you know that the VIX uses the demand for options (both puts and calls) to calculate the expected volatility for the S&P500? That’s why the VIX can go up even if the market goes up.
The market had a wild sell off in the last couple hours of trading today. It seems like my 2 week target prices that I put up after yesterday’s massive rally were a little too ambitious. I’m expecting a wild ride tomorrow.
As you can see in the QQQ chart above, we have a “Bearish engulfing” candlestick pattern which erased the big bounce from yesterday. I am unsure where this market will go, but we are still right around the weekly channel support at 160. If the market can hold up here, I expect higher prices. However, the professional traders are still bearish, so be cautious if you are buying.
Despite no seriously bad news today, we sold off hard, thus, I think that we are going to have more volatility ahead.
BABA is getting closer to the buy zone in the 165-175 level, so I would be on a lookout for that.
See you tomorrow!