Vix Continues To Implode

For you OEX traders, the VIX continued to implode on Monday. Once again, this suggests that volatility is reverting back to its mean. However, as you know, these are not normal times. We remain in a news driven environment. Therefore, use extreme caution should you decide to take trades here.

Looking Ahead

Most sectors that were in strong downtrends bounced on Monday. This should set up numerous opportunities on the short side. For the more aggressive traders, you  might look to fade this rally. For everyone else, wait for these sectors to set up.

For example, the semis ($SOX.X | Quote | Chart | News | PowerRating) have begun to bounce and will likely set up as a short soon.

Best of luck with your trading on Tuesday!

P.S. Reminder: Protective stops on every trade!