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Brian Kahn
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Brian has over 13 years of securities trading experience. He began his financial career in 1998 trading in the bond futures markets for International Trading Group LLC. in Chicago, IL. Upon moving to Utah, while continuing to trade and manage his own accounts, Brian helped to create, teach and... More
My company:
Jupiter Peak Financial, LLC
My blog:
Jupiter Peak Financial - The Local's Take
  • Weaker Equities Causing VIX (And Opportunities) To Rise 0 comments
    Apr 19, 2012 10:46 PM

    Lately, there has been a slight pickup in volatility, which for tradres is a good thinkg. We are trading the potential for movement and when the VIX goes up, that is our "gauge" that the possibility of movement is picking up.

    Technically, we have the SPX moving back towards the lows at 1360. Besides this recent low at 1360, support could also come in at the "psychological level" of 1350. (click to enlarge)

    Past performance is not indicative of future results

    The next chart shows the XLF - an ETF that represents the Financial Sector. This can be viewed as one of our "bellweathers" as many traders and investors look to financials to set the trend. You can judge for yourself if it is a leader or lagger as you compare it to your watchlist. The point of looking at it is to learn "sequence". Is the up trend sequence changing? We can classify that it may change if a new low is set if we violate 14.94. We will then have a lower high and a lower low, which will make it difficult for XLF to retrace all the way back up to its previous high of 15.98.

    Past performance is not indicative of future results

    This pickup in the VIX that I mentioned is correlated to a move lower in equity prices. This pickup in the VIX is also an exciting time to look for opportunities as the markets provide larger trading ranges.

    Happy Trading

    Brian

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: market-outlook
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