Market volatility is here for a while. Lets buy some VXX (CBOE Volatility Index) and TZA (3 times bear exposure to Russell 2000) today !!! Hold tight !!
If S&P test the 50% retractment which is about 100 points away, the VXX might get to $65-ish and the TZA maybe gets to mid $20s. This was the mid summer range last year.
Watch out for earnings forecast and pre-announcements during the next few weeks. Q2 earnings should still be good but it is the future growth that the street will focus on.
Be careful out there... it is going to be a trading range summer but I think the low end of the range will be expanded downward. Likely 1075 high and 1000 low but testing 950 somewhere. Euro is still in trouble and Spain was downgraded today. Watch out for the other PIGS (Portugal, Italy, Greece, Spain) and Greece's upcoming news on their debt. Maybe a European bank is on the wrong side of things and a domino effect will scare the market. Remember the guys at the banks are not that smart... they all are a bunch of dumb cows in a big herd. Goldman is the smartest and they are getting jumped on now.
Macro equity trading strategies with risk management (paired trading when needed). Some might think these are crazy ideas but even a 'blind squirrel' will find a nut every now and then !
Blind Squirrel Trading Strategies
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