The extremely sharp rise in the past month has been on ever decreasing volume. My purchase today is likely to be much shorter term than I anticipated. The SPY Daily is exhibiting a "shooting" star like formation. I am looking for a pullback tomorrow and into Thursday.
VIX painted two black candles in a row. So the VIX is technically up today as well as the market. This is interesting and you can see some of it in the CPCI:CPCE chart later on. VIX has been far from the 20ma for quite some time now. It needs to revert back to its mean.
BPSPX:CPC warned us early that this rally might happen. I was hoping for a good pull back to get out but that did not happen.
There has been massive call buying in equities. The market has been going up for 1 month now. We see that the CPCE has dropped sharply indicating massive call buying relative to puts. Everyone is buying calls with the market being up for a month? I think this is the time for a sharp drop to make those calls worthless.Admittedly, we will have to wait for the BPSPX:CPC 20ma to cross the 50ma going up and then coming back down before we can make a big commitment.
