We wanted to start off today’s commentary on the S&P 500 Volatility Index ($VIX, 16.45, down 0.04) as we laughed out loud when one of the talking heads said this isn’t your grandfather’s VIX.
To make a long story short, they basically said to discard the VIX when using it to predict market direction. This could be farthest from the truth as we have usd the VIX for decades to plot the market’s possible direction and we talk about it every day and we do chart work on it every week. I guess that makes us grandpapa’s but our advice is to continue to ignore the talking heads and watch the VIX.
The market is getting another lift today on better-than-expected economic news as the revised GDP figures from 2Q came in at 2.5% versus expectations for 2.2%. Elsewhere, Initial Claims fell 6,000 to 331,000.
Today’s gains have triggered upper resistance levels but it remains to be seen if they hold into the close.
The Dow is up 62 points to 14,886 while the S&P 500 is higher by 8 points to 1,643. The Nasdaq is advancing 35 points to 3,628.
We closed another winning trade for our Weekly Wrap yesterday and we should be out of 1-2 more trades for our Daily by Friday’s close.
We did take a New Trade for our Weekly Wrap earlier today on a stock setting 52-week highs and we will be in perfect shape to open 4-5 New Trades for our Daily starting next week. We could have a new one as early as this afternoon or tomorrow but we haven’t got the signal yet.
We have updated the 2 trades that will be in play after the close and on tomorrow’s open. Subscribers, check the Members Area for the updates.