Quiet and Low Volatility? Nervous Longs

Posted on May 9 2017 - 3:56pm by Sharpe Trade

The VIX has been printing single digits now.  9.84 at the time of this writing.  Continuously embarrassing those who have been predicting a market collapse because their weekly “RSI indicator” keeps clanging “overbought”.  Of course, that would necessitate that they understand in strong markets their “RSI indicator” is about as useless as a waterproof tea-bag.

Throw out all of your useless technical indicators.  A VIX print of 9.84 now, means you should have been buying strong names 7 months ago.  Unless you have a time-machine, or an iron-clad long-flat process, this means you’re all pretty well out of luck in the here-and-now.

We still have that Target (TGT) long we mentioned some time ago in our long / short book.  As well as our long PGX position that we’ve had from the beginning of the year; with it’s gorgeous dividend payment.  In actuality though, with the indices moving higher and higher, our long-short book holds a majority cash position.  

In in another separate process?  We are balls to the wall long on QQQ.

Do not think we are in any way bragging.

I said … we are massively long QQQ in that process.

Have you seen a chart of the Q’s lately?  

4 Hour Chart


That chart is reminiscent of Silver in 2010.  I’m not bragging.

I’m incredibly nervous …

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