Volatility is Back and its great for trading. Couple of scenarios mapped out in my head so far. One being a gap down big and reverse, this is the one it feels like everyone wants, whether we get it or not is unknown. 2. Gap up small , grind out a little then give it all back and resume trend down. 3. Open flat and chop people around all day. The point is anything can and will happen and it’s important to have an expanded thinking here if playing this environment. Nearly every stock im looking at are trading ranges higher than all year long which is no surprise given the surge in VIX. To me that says there’s a lot of meat on the bone.
VIX- 20 breakout things are going to be more volatile here so expect bigger ranges this hasn’t happened since October 2023 above 23 ideally we can get some panic to me its been orderly selling so far
SMH- Ill be eyeing vs this 206 level at the 200day if we panic tomorrow off the open for a buy
DELL- will be watching vs 95 on a panic type scenario
MU- same thing this is all a correlated trade SMH DELL etc its just a matter of vehicle selection
SOXL – ideally 26-24 washout for a potenitla buy zone
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