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Thursday, August 4, 2011

VIX up 35% in a day

The VIX spiked up 35% today, a good sign of panic selling. Historically, the VIX has had a 1 day move of 30% or greater only 14 times . The next day the S&P was higher 10 out of the 14 occurrences for an average 1 day move of .66%!

Below is a table that shows all the prior occurrences of the VIX spiking greater than 30% in 1 day then buying the S&P at the close and selling at the close on the next day.
Our intermediate term S&P model is still sitting safely in cash. Join our team and trade with the odds, details here.

VXX, VXZ, XIV, SPY SDS, TNA, EWJ, EEM, XLF, XLE,QQQ, QID

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