The biggest question in the market right now is where do we look to short?
We’re keeping a close eye on the Volatility Index (VIX) as it may be setting up for a big push and pave the way for our short opportunities.
On Friday, the VIX bounced off the 21 exponential moving average (EMA) and finished above the 8 EMA.
The VIX is printing a proprietary buy signal (green arrow) for the first time in two years. The last time we saw a buy signal on the VIX was Feb. 20, 2020, the day before the market rolled over on the Covid-19 news.
Any explosive move in the VIX could send the market much lower…
We’re continuing our game plan to short any strong bounces with the idea that the bearish weekly squeezes on the S&P 500 (/ES), Nasdaq (/NQ), and Russell (/RTY) will send the market to lower lows into March and April.
We’ll discuss the sectors and names we’re looking to short in the Sunday weekly watchlist video above, and we’ll see you Monday morning for live premarket prep at 8:45 a.m. Eastern.
Stay Focused!